The Rebate of State Levies scheme helped India achieve an export growth of 31.7 per cent in April 2017 compared to April 2016.This is what a survey done in 8 states by Apparel Export Promotion Council (AEPC) discovered.
It’s believed continued ROSL support will help exporters expand their factories, lead to a higher rate of employment, better work environment and better prices for farmers. Since its rollout in September last year, the scheme has helped turn the tide of falling apparel exports. Since then growth has been on an upward trajectory, peaking in April this year.
During March to April 2017, Indian garment exporters were able to increase production by around 30 per cent for achieving this growth and employed at least five per cent more workers during the same period. The Rebate of State Levies has helped the industry increase production at very competitive rates for a larger share of global markets.
64 per cent of the respondents are of opinion that continued ROSL support will help them expand their factories. The respondents are also of opinion that expansion of factories will also lead to higher rate of employment (67%), better work environment (73%) and better prices for farmers (50%).Moreover, 77% exporters are of the view that ROSL can be continued in its existing form. Commenting on the findings of the survey, Ashok G Rajani, chairman AEPC said, “AEPC has been reiterating the importance of ROSL for the industry. ROSL has helped industry deliver phenomenal growth for the sector. ROSL since its announcement in last June added a positive sentiment amongst exporters and roll-out in September last year helped lifting the falling apparel exports. Since then the growth has been on an upward trajectory peaking in April this year.”
An overwhelming proportion of beneficiaries of the ROSL scheme are exporters with a turnover of less than Rs 10 crores a year.The 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 way of drawback schemes.
The ROSL benefit not only ensured Indian made-ups were competitive in the world markets but also encouraged Indian players to expand capacity to meet overseas demand.
Incorporated in 1978, AEPC is the official body of apparel exporters in India. It provides invaluable assistance to Indian exporters as well as importers/ international buyers who choose India as their preferred sourcing destination for garments.
