The new rates under the Rebate on Duties and Taxes on Export Products (RoDTEP) scheme are expected to boost orders for textile exporters in Gujarat, besides offering them better cost-competitiveness. The raw rates have increased export incentives for yarn and fabrics from 2.5 per cent to 4.5 per cent. Even though ceilings have been imposed on procurement price, textile exporters expect the rebate to improve their cost-competitiveness. Exporters will be able to offer a competitive price to their customers. This will help them gain more orders and boost their revenues, says Chintan Thaker, Chairman, Assocham-Gujarat State Council.

Demand for textile exports has begun to increase with inquiries pouring in for yarn, fabric as well as garments from various countries. The new rates will help exporters leverage demand, believe industry players. Manufacturers of technical textiles as well as manmade fibre (MMF) are likely ti have an edge as their competitiveness will increase leading to an increase in order volumes, says Narain Agrawal, past Chairman, Synthetic and Rayon Textile Export Promotion Council (SRTEPC).