The Rs. 6,000 cr special package announced in 2016 for textiles and apparel sector was a step in the right direction, as per the findings of an AEPC survey conducted to gauge the impact of the Special Package. The Special Package for textiles has not only boosted exports but has also helped in increasing the investments. As per the AEPC survey, the Special Package had generated additional investment of around Rs. 2,500 cr. and additional employment of around a lakh in the first twelve months of the roll out.
The findings of the AEPC survey suggests that ROSL had a positive impact on garment industry. After the implementation of the ROSL in September, 2016, India’s RMG exports has increased by 2.7 per cent in value terms and grown by 6.4 per cent in volume terms. There is direct correlation between release of ROSL to exporters vis-a-vis increase of India’s RMG exports like in month of announcement & implementation of ROSL in August – 2016 – +3.9 & September & October, 2016 – +12.9 per cent & +10.97 per cent and also showed a growth in the months of disbursal of ROSL – March – 2017 – +20.3 per cent, April – +31.7 per cent.
Commenting on the findings of the AEPC survey, HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) said,” RoSL has been a well thought out scheme, which had a positive impact on garment industry. There is direct correlation between releases of ROSL to exporters vis-a-vis increase of India’s RMG exports. Though Demonetization and GST roll out has temporarily slowed down the industry, the positive impact of RoSl is expected to bring results in 2018-19, as the industry settles down, post GST roll out. AEPC would like to thank the Ministry of Textiles for looking into embedded/blocked central and State taxes after the implementation of GST, while considering the new drawback and RoSl rates. “AEPC has informed the concerned ministries about the positive impact of RoSL on RMG exports and has requested the policy makers for increasing the ROSL rates.