Indian apparel exports industry noted a surge of 31.7 per cent in April this year post the implementation of Rebate of State Levies (ROSL) Scheme, which was announced in July 2016. Also, the exporters have increased their production by around 30 per cent and generated approximately five per cent more employment.
Ashok G Rajani, Chairman, AEPC said, “The big jump in apparel exports is the result of recently implemented incentive called Rebate of State Levies on export of garments, as it helped the industry to increase the production at very competitive rates for a larger share of global markets. 80 per cent beneficiaries of ROSL Scheme are exporters (SMEs) with a turnover of less than Rs. 10 crore per year.
The Chairman also urged the Government to carry on the ROSL Scheme in the GST era too. A study of more than 1,000 exporters on key contributions to exports was also conducted, and will soon be disclosed.
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ROSL Scheme is in tune with the recognized economic principle of ‘zero rating’ of export products and in recognition of the fact that at present only central levies are rebated by the way of drawback schemes. With GST being operational from July 1 2017, any dilution in the ROSL Scheme will hit the apparel export sector badly, thereby impacting job growth.
