Additional Incentives under Duty Drawbacks for Garments approved by Govt

By | June 23, 2016

Cabinet approves Additional Incentives under Duty Drawbacks for Garments

Cabinet approves Special Package for Job Creation & Export Promotion in Textile & Apparel Sector

Special Package to create 1 Crore Jobs in 3 Years in Textile and Apparel Sector

The Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi has decided to provide additional incentives for garments under Duty Drawback Scheme. This is one of the various measures that comprise the special package announced by the Government today, for job creation & export promotion in the textile and apparel sector.

To implement the decision, in a first-of-its-kind move, a new scheme will be introduced to refund the state levies which were not refunded so far. This move will greatly boost the competitiveness of Indian exports in foreign markets and is expected to cost Rs 5500 crores to the exchequer.

Further, drawback at All Industries Rate will be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme.

Impact in Three Years

This is expected to yield the following impact in three years:

  • Increase in exports by 9.5 billion US$
  • Increase in employment by 9.5 lakhs
  • Increase in investment by 2.7 billion US$


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