The textile and apparel industry, while welcoming extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for two years, has expressed disappointment over unchanged Import Duties.
Cotton Textiles Export Promotion Council chairman Sunil Patwari said continuation of the RoSCTL was essential for the long-term trade planning. Orders could be placed in advance for long-term delivery.
The scheme has seen an increased allocation from ₹8,404.66 crore last year to ₹9,246 crore in the budget this year.
Apparel Export Promotion Council chairman Sudhir Sekhri said continuation of the RoSCTL for export of garments and apparel till the end of March 31, 2026 would give the much needed relief to the industry as the traditional markets of the US and the EU were under stress.
The Confederation of Indian Textile Industry (CITI) chairman Rakesh Mehra said there was no major policy announcement in the interim budget. “The industry needs immediate relief from the financial stress, especially in the spinning sector.”
The total budget allocation for textiles has increased by 27.6 %, largely due to the allocation of ₹600 crore for Cotton Corporation of India towards the cotton MSP operations. Cotton procurement by CCI should be revamped as per policies recommended by user industry associations to ensure price stability and discourage speculative trading.
The allocation for RoSCTL and RoDTEP had increased by 10% and 5.8% respectively, which was modest. The industry was trying to enhance export performance and expects better allocations for trade promotion in the full budget to be announced after the elections, he said.
S.K. Sundararaman, chairman of the Southern India Mills’ Association, said the demands of the textile industry relating to the raw material issues and a few other industry demands should be considered in the full-fledged budget. He welcomed the announcement of measures to encourage green power, including bio-manufacturing, roof top solar and offshore wind to reduce the carbon footprint and the initiatives to prepare the country for meeting the sustainability goals.
According to Sanjay Jain, former chairman of Textile Sector Skill Council, the budget does not offer any major supportive measure to the industry. It did not remove the Import Duty on cotton and or changed the duty on fabric imports, he said.
Tiruppur Exporters Association president K.M. Subramanian said the budget had no announcement related to the textile sector and “We hope there will be supportive measures in the final budget.”
The PTA Users Association general secretary R.K. Vij said it expected corrective changes in Customs Duty for fabrics. However, at least in the full budget the government should make the necessary changes along with rationalisation of the GST rates for manmade fibre sector.
