Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Govt. extends RoSCTL Scheme for Garment Exports

Note4Students

From UPSC perspective, the following things are important :

Prelims level : RoSCTL Scheme

Mains level : Not Much

The RoSCTL scheme will continue for export of garments/apparels, and made-ups till March 31, 2024, according to a press release from the Union Ministry of Textiles.

What is RoSCTL Scheme?

  • RoSCTL stands for Rebate of State and Central Taxes and Levies (RoSCTL).
  • It is an export incentive in the form of transferable and sellable duty credit scrips (certificate) offered on the basis of the value of the export.
  • It replaces the Rebate of State Levies (RoSL) scheme, a monetary incentive scheme under which Customs would deposit the rebate directly into the exporter’s bank account.
  • This scheme was seen as India’s reaction to the increasing international pressure on export incentives provided by the Indian government.

Why was this scheme introduced?

  • The US, in particular, has been very vocal, urging the discontinuation of export incentive schemes like the Merchandise Exports from India Scheme (MEIS).
  • It held that they flouted the WTO Agreement on Subsidies and Countervailing Measures.

Why was this scheme extended to textile sector?

  • With a view to boost exports and job creation in the textile sector, the government has approved the continuation of the scheme.
  • The scheme aims to help them cut high logistics and other costs and enable them to compete globally.

 

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