The special package announced in 2016 for the Indian textile and apparel sector has not only boosted exports but also helped in increasing investments. In the first twelve months of the rollout, the package generated additional investment of around Rs 2500 crores and additional employment of around 1,00,000 people.

Rebate of State Levies (ROSL) has had a positive impact on the garment industry. As a result, India’s apparel exports increased by 2.7 per cent in value terms and by 6.4 per cent in volume terms.

In August, September and October 2016 India’s apparel exports grew 3.9 per cent, 12.9 per cent and 10.97 per cent. Similarly, in the months of disbursal of ROSL -- March and April 2017 -- apparel exports increased 20.3 per cent and 31.7 per cent.

So there is a direct correlation between the release of ROSL to exporters vis-a-vis an increase of India’s readymade garment exports. Though demonetisation and the GST rollout temporarily slowed down the industry, the positive impact of ROSL is expected to bring results in 2018-19 as the industry settles down post the GST rollout. An overwhelming proportion of beneficiaries of the ROSL scheme are exporters with a turnover of less than Rs 10 crores a year.