\n
![](\"https:\/\/static.fibre2fashion.com\/Newsresource\/images\/308\/shutterstock-1149339077_320223.jpg\")
<\/p>\n
\n<\/p>\n
The Confederation of Indian Textile Industry (CITI) said the across-the-board reduction in RoDTEP rates to 50 per cent has come as a \u201cbolt from the blue\u201d, 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.<\/p>\n
CITI chairman Ashwin Chandran<\/em><\/strong>\u00a0noted 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\u2019s reputation as a reliable sourcing destination.<\/p>\n 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.
Echoing these concerns, Sanjay K Jain, ICC National Textile Committee chairman<\/em><\/strong>, termed the move a \u201cshocking hit\u201d 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\u2019s merchandise exports, adding that abrupt policy changes without transition periods are deeply unsettling for industry stakeholders.<\/p>\n The textile sector\u2019s 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\u2013January 2026. CITI also highlighted the sector\u2019s relatively low profitability and its critical role as one of India\u2019s largest employment generators, reinforcing the need for policy predictability.<\/p>\n Meanwhile, the government has reportedly restored RoDTEP reimbursement levels for select agricultural exports following stakeholder feedback, indicating a calibrated approach to sectoral concerns.<\/p>\n 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\u2019s ambition of scaling textile and apparel exports to $100 billion by 2030.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (KUL)<\/p>\n
\n <\/p><\/div>\n
\nCITI and industry leaders warned that the cut undermines margins, contractual commitments and competitiveness amid weak global demand and higher tariffs.<\/p>\n