Ahmedabad: With the center announcing new rates under rebates on tasks and taxes in the export scheme (Rodtep), textile exporter expects a boost in a better cost volume.
According to new prices, Rodtep expanded 2.5% incentives to 4.5% on thread exports and fabrics from various types.
Although the ceiling has been implemented at procurement prices to be able to take advantage of benefits, exporters in the textile sector say that rebates will ensure their competitiveness.
“The price competition from textile makers in Vietnam and Bangladesh is one of the main challenges faced by Indian exporters.
These two countries enjoy free trade agreements (FTAs) with the European and other markets, giving them excellence over Indian producers.
This is especially true for clothing and made Make it, where remained unsustainable CostPetitive for Indian textile makers after the government attracts merchandise export incentive scheme (MEIS), “said Chintan Thaker, Assocham – Gujarat State Council.
“However, with new incentives launched as part of Rodtep, exporters will now be able to offer competitive prices to their customers.
Better prices will help manufacturers get more ordering volumes and in turn increase their income,” he added.
In the textile sector, export demand has begun to increase with questions that pour for threads, fabrics and clothing from various countries.
Announcement of tariffs, according to industrial players, has come at the right time, when exporters can take advantage of requests.
Industrial estimates show that the textile and cavern sector provides employment for an estimated 75 lakh people throughout Gujarat.
Manufacturers of technical textile and fiber Manminad (MMF) will have advantages, industrial players said.
“As demand increases, our competitiveness will definitely rise and bring a larger order volume.
Although the level of announced needs to be revised to compensate for the actual embedded taxes and levies paid by exporters if the MMF textile line occurs.
Enter the entire MMF textile value chain will push Inclusive growth in the export of MMF textiles, “said Narain Agrawal, Past Chair, Synthetic and Rayon Textile Export Board (SRTEPC).