The incentive stack and its impact on costs
The government**;s export-support framework rests on Rebate of State and Central Taxes and Levies (RoSCTL), which refunds embedded taxes on exported garments and made-ups through tradable duty-credit scrips. The Ministry of Textiles has extended the scheme until September **, ****, or until the **th Finance Commission approves a successor, whichever comes first. Non-apparel textile exports continue to receive support under Remission of Duties and Taxes on Exported Products (RoDTEP), also extended from April * to September **, ****.
On the input side, Customs Notification No. **/**** exempts imported raw cotton from the basic customs duty and Agriculture Infrastructure and Development Cess between June * and October **, ****, removing an import duty burden of roughly ** per cent. The measure addresses India**;s cotton supply gap, with ****–** production at **.*** million bales against domestic consumption of **.* million bales. Together, these policies lower input costs, improve exporters**; price competitiveness, and help preserve margins in a highly cost-sensitive global market.
India strengthens export competitiveness as US tariff rules shift
