The Confederation of Indian Textile Industry (CITI) said the across-the-board reduction in RoDTEP rates to 50 per cent has come as a “bolt from the blue”, warning that exporters had already finalised orders based on the earlier incentive structure. The industry body has sought urgent reconsideration of the decision to safeguard margins and contractual viability.
CITI chairman Ashwin Chandran noted that export orders in textiles are typically booked two to three months in advance, with pricing linked to prevailing policy benefits. The sudden cut, he said, disrupts financial calculations for ongoing contracts, imposes unexpected cost burdens and risks weakening India’s reputation as a reliable sourcing destination.
India’s textile industry has urged the government to restore full RoDTEP benefits after rates were halved to 50 per cent, calling the move abrupt and disruptive to existing export orders.
CITI and industry leaders warned that the cut undermines margins, contractual commitments and competitiveness amid weak global demand and higher tariffs.
Echoing these concerns, Sanjay K Jain, ICC National Textile Committee chairman, termed the move a “shocking hit” to exporters, emphasising that RoDTEP merely reimburses embedded taxes already paid by producers. He cautioned that the immediate 50 per cent reduction would adversely impact existing orders and erode the competitiveness of India’s merchandise exports, adding that abrupt policy changes without transition periods are deeply unsettling for industry stakeholders.
The textile sector’s appeal comes amid broader industry challenges, including subdued global demand, supply chain realignments, higher tariffs in key markets and declining export performance during April 2025–January 2026. CITI also highlighted the sector’s relatively low profitability and its critical role as one of India’s largest employment generators, reinforcing the need for policy predictability.
Meanwhile, the government has reportedly restored RoDTEP reimbursement levels for select agricultural exports following stakeholder feedback, indicating a calibrated approach to sectoral concerns.
Textile exporters, however, continue to operate under the reduced regime and have reiterated calls for parity, arguing that stable and adequate remission support is essential to advance India’s ambition of scaling textile and apparel exports to $100 billion by 2030.
Fibre2Fashion News Desk (KUL)
