Confederation of Indian Textile Industry (CITI) has ex
pressed concern over the halving of benefits under
the Remission of Duties and Taxes on Exported Products
(RoDTEP) scheme and has urged the government to
restore the earlier rates and value caps with immediate
effect.
CITI Chairman Ashwin Chandran said, “The decision has
come as a bolt from the blue and is a real shock, as it is
the last thing the exporting community was expecting
amid the continuing global uncertainty, which shows no
signs of letting up.”
Chandran added, “Given the steadfast commitment of
the government to promote exports, we remain hopeful
that the decision would be re-examined since exporters
had booked orders keeping the RoDTEP scheme
mechanisms in mind. We earnestly request that the
earlier applicable RoDTEP rates and value caps be
restored with immediate effect for the textile industry, as
policy predictability is essential to raise global
competitiveness.”
RoDTEP rates currently range from 0.5 per cent to 3.6 per
cent.
According to CITI, the reduction in benefits would hurt
margins in an industry already facing multiple challenges.
Textile exports declined 2.35 per cent during April 2025
January 2026 compared to the same period last year.
The sector is also grappling with weak global demand,
geopolitical uncertainties, supply chain shifts, and higher
tariffs in key markets such as the US and EU relative to
competing countries. Average return on capital
employed (RoCE) in the industry stands at around 12 per
cent, lower than sectors such as IT.
Export orders in textiles are typically booked two to three
months in advance, with prices finalised based on
prevailing policy incentives. CITI said the immediate 50
per cent cut in RoDTEP benefits could make ongoing
contracts financially unviable and impose unforeseen
costs on exporters.
Chandran said stable and predictable policies are
essential to enhance global competitiveness and
support the government’s ‘5F’ vision — Farm to Fibre to
Factory to Fashion to Foreign — aimed at strengthening
the textile value chain.
He emphasised, “Any abrupt reduction, without
adequate consultation or transition time, would disrupt
the export ecosystem, distort cost structures, undermine
the global competitiveness of Indian exports, thereby
endangering the livelihood of millions of people
engaged directly or indirectly in the textile sector.”
MATEXIL seeks reversal of RoDTEP rate cut amid export
concerns
MATEXIL has urged the government to roll back the
recent reduction in RoDTEP (Remission of Duties and
Taxes on Exported Products) rates, warning that the
move could significantly affect the competitiveness of
India’s manmade fibre and technical textile exports.
According to Shaleen Toshniwal, Chairman of MATEXIL,
exporters were taken by surprise after the Directorate
General of Foreign Trade reduced RoDTEP rates and the
notified value caps for all HS lines by 50 per cent. He
described the abrupt decision as a major setback for
exporters.Toshniwal said the immediate implementation
of the revised rates is likely to adversely impact the
export performance of manmade fibre textiles and
technical textiles, as the reduction could weaken their
price competitiveness in global markets.
The RoDTEP scheme was introduced to offset embedded
taxes and levies at the central, state and local levels that
are incurred during the production and distribution of
exported goods but are not otherwise refunded or
credited. These include prior-stage cumulative indirect
taxes on inputs and services that remain embedded in
export products.He noted that the reduction has
compounded challenges for exporters at a time when
the industry is already grappling with volatility and
uncertainty in global markets. The development has
intensified concerns within the sector, particularly as
businesses navigate shifting demand conditions and
rising competitive pressures.
While the government-appointed RoDTEP committee is
currently reviewing the existing rates, Toshniwal said the
sudden cut has created uncertainty among exporters of
manmade fibre and technical textiles.
MATEXIL has called on the government to reinstate the
earlier RoDTEP rates and maintain them until revised rates
are formally finalised and notified, aiming to provide
stability and confidence to exporters during the ongoing
review process