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Gujarat’s textile sector to see a boost in exports

Aug 24, 2021
Gujarat’s textile sector to see a boost in exports

Ahmedabad

As the centre has announced new rates under the Rebate on Duties and Taxes on Export Products (RoDTEP), the textile exporters are expecting that the order volumes will experience a boost.

As per the new rates, the incentives have been increased from 2.5% to 4.5 % on the export of yarn and fabrics. The exporters are of the opinion that this change in the rates will improve their cost-competitiveness.

According to Chintan Thaker, Chairman, Assocham, one of the major challenges faced by the Indian exporters is the price competition from the textile makers in Bangladesh and Vietnam. FTA with European and other markets is enjoyed by these countries which gives them a clear edge over the Indian manufacturers. This mainly holds true for garments and made-ups where it is important to stay competitive. He also said that as this incentive has been rolled out as a part of RoDTEP, exporters will now be able to offer competitive prices to their customers. This will help the manufacturers to gain more volumes of orders and in turn, boosts their revenue.

 It is also seen that there has been an increase in the export demand for yarn, fabric, and garments. The rate announcement by the government has come at the right time because now the exporters can leverage the demand. According to Narain Agrawal, Past Chairman, Synthetic and Rayon Textile Export Promotion Council, with the increase in the demand, the competitiveness of the players will surely go up and this will bring greater order volumes. He also said that the actual rates need to be revised so that the taxes can be compensated in the case of the MMF textile lines.

Source – The Times of India

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