In a big boost for the textile sector, the cabinet has extended the Rebate of State and Central Tax Levies (RoSCTL) scheme till March 2024. The rebate will be at the same rate as notified by the Textile Ministry in March.
To understand the impact, CNBC-TV18 spoke to Dipali Goenka, CEO & Joint Managing Director at Welspun India.
Goenka said, “There were couple of uncertainties, and we have been waiting for a long time and this announcement has been a transformational decision. This has actually given us a long road ahead to invest in this business.”
She added, “Our commodities are at an up surge, cotton, chemicals, coal and the others, they are on the upsurge. This actually helps us to be competitive with Bangladesh and Vietnam in the long run. I think that is where we see and we poise ourselves against. Far more investments will come into this category and more employment and more foreign currency as well.”
Goenka further said, “As textile manufacturers, we will invest where it is needed. Welspun is very strong on its path of becoming the FMCG for textiles, where we are talking about digitisation, a brand portfolio and also about creating a portfolio of supply chain collaboration.”
On exports, she said, “India is the largest producer of cotton and the largest exporter of cotton yarn and cotton as well. Bangladesh imports cotton from us and fundamentally that advantage India has. I will talk from home textile category, we are completely integrated in supply chains and that is the advantage India has.”
On PLI scheme, she said, “PLI is very much focused on man-made fibres and that is what it is, and that actually is one thing the government has done is, supporting man-made fibres because that again is something, which has been lying low. But with the Rebate of State and Central Levies and Taxes (RoSCTL), there will be a massive boost on the cotton segment and PLI will give the boost to the man-made fibres.”
For full management commentary, watch the video.