Duty drawback rate increase to boost textile exports from India

Duty drawback rates have been raised by up to 70 per cent across all varieties of textile value chains

The government’s decision to raise the duty drawback rates will boost textile and apparel exports, experts said.

Despite several incentives offered by the government to boost textile and apparel exports, their shipment from India stagnated between $32 billion and $37 billion for over seven years.

For the financial year 2017-18, India witnessed textile and apparel exports to the tune of $36.05 billion as against the target of $45 billion. Now, the government has set yet another challenging target of $82 billion by 2021.

To achieve this, the government hiked the Merchandise Export from India Scheme (MEIS) rate from 2 per cent to 4