Saturday, October 3, 2026
EN AR
News Policy & Trade
1 min read

India extends RoSCTL tax rebate for apparel and made-ups exporters to 31 December

India's Ministry of Textiles has extended its RoSCTL scheme, which refunds embedded taxes to apparel and made-ups exporters, by three months to 31 December 2026, keeping a key cost support in place for a major Egyptian competitor.

India extends RoSCTL tax rebate for apparel and made-ups exporters to 31 December
Photo: Ministry of Textiles, India

India's Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exports of apparel, garments and made-ups by three months, from its previous expiry of 30 September to 31 December 2026, Asianet News reported on 30 September. The extension applies from 1 October.

RoSCTL, in operation since 7 March 2019, refunds exporters for state and central taxes and levies embedded in their products that are not refunded through other mechanisms. The ministry said the extension is intended to ensure policy continuity and predictability for exporters and to sustain the competitiveness of India's labour-intensive, value-added apparel and made-ups sector.

According to the report, the scheme supported more than 15,400 exporters across 444 districts in 2025–26, most of them micro, small and medium-sized enterprises.

The short extension comes as Indian garment exporters face pressure in their main markets. India is negotiating a bilateral trade agreement with the United States, and on 1 October Commerce Minister Piyush Goyal said talks with US Trade Representative Jamieson Greer were directed towards concluding an interim agreement, Fibre2Fashion reported.

What it means for Egyptian exporters

India competes directly with Egypt in cotton garments and home textiles, including bed linen and towels, in both the EU and US. Schemes such as RoSCTL lower Indian exporters' effective costs and allow sharper pricing, so their renewal keeps that support in place for at least another quarter. Egyptian exporters, who rely on Egypt's own export subsidy programme, should factor this into pricing for orders shipping in the final months of 2026 and watch whether India extends the scheme again beyond December.

Source: Asianet News, 30 September 2026

Indiaexport subsidyready-made garmentshome textilescompetitorstrade policy

Related

Report a problem with this article