Textile exporters demand extension of RoSCTL for 5 years
By yash chouhan 2026-02-26 17:02:48
Textile exporters seek 5-Year RoSCTL extension for global competitiveness
New Delhi: The Home Textile Exporters’ Welfare Association (HEWA) has called for a five-year extension of the RoSCTL (Rebate of State and Central Taxes and Levies) Scheme, following the Ministry of Textiles’ formal acknowledgement that the representation has been taken on record for policy-level examination.
The representation, submitted through the Prime Minister’s Office, emphasized that RoSCTL functions as a WTO-compliant tax neutralisation mechanism aimed at refunding embedded and non-creditable taxes to ensure Indian textile exporters remain globally competitive.
Anant Srivastava, President, HEWA, said, in a statement, "We are extremely thankful to the Government of India for negotiating multiple trade agreements that create substantial opportunities for Indian textile exporters. To capitalise on these developments, exporters require stability and predictability in domestic policy. RoSCTL plays a vital role in ensuring competitiveness during this expansion phase.”
Notably, in its official communication dated 25 February 2026, the Ministry clarified that continuation or extension of RoSCTL is a policy matter. The Ministry noted the observations submitted by HEWA and stated that the suggestion has been placed on record for examination at the appropriate level.
HEWA highlighted that the timing of policy stability is crucial as India advances negotiations under the India–EU and India–UK Free Trade Agreements, alongside existing trade arrangements with Australia and the UAE. The Association stated that continuity in tax neutralisation mechanisms will enable exporters to effectively leverage expanded market access.
The textile and garment sector continues to face global headwinds, including high US tariffs, rising sea freight rates, post-COVID cost escalation, and geopolitical disruptions impacting supply chains.
Vikas Singh Chauhan, Director, HEWA, said: “India is well positioned to benefit from global supply chain realignments. However, this is not the appropriate time to alter the refund mechanism of embedded taxes under RoSCTL. MSME exporters need policy continuity to sustain employment, strengthen capacity, and plan long-term investments.”
HEWA expressed confidence that a balanced, forward-looking decision will be taken in the larger national interest, supporting MSME exporters, employment generation, and India’s global textile competitiveness.
