With the U.S. accounting for 28% of the total Indian textile and apparel exports, the industry has urged the government to come out with a bailout package, similar to the one announced during the COVID-19 pandemic.
Representatives of more than 20 textile associations and export promotion councils in Tamil Nadu had a meeting with Union Finance Minister Nirmala Sitharaman in Chennai on Tuesday, during which they sought a two-year moratorium for repayment of principal bank loans, 30% collateral-free loans under the emergency credit line guarantee scheme (ECLGS) with 5% interest subvention, extension of remission of duties and taxes on exported products (RoDTEP) and rebate of state and central taxes and levies (RoSCTL) beyond March 31, 2026, enhancement of value cap for duty drawback, RoDTEP and RoSCTL, and increase in RoDTEP rates by 2% to 3%.
They also sought re-introduction of the focus market incentive scheme, extension of 20% of the FOB value for all the exports made to the U.S. with effect from August 27, 2025 in the form of transferrable duty credit scrip, re-introduction of interest equalisation scheme for pre and post shipment rupee export credit, and extension of 5% benefit for all categories of exports without cap.
The government is seriously considering a package for the textile and apparel exporters and the industry is hopeful of an announcement soon, said one of the export promotion council heads who attended the meeting.
Published – September 02, 2025 09:40 pm IST
