The government has also doubled the rates for incentives under an export promotion scheme -- MEIS -- to 4 per cent for readymade garments and made-ups.
In a series of tweets, Union Textiles Minister Smriti Irani said post-GST rates for remission of state levies/taxes and Enhanced Merchandise Exports from India Scheme (MEIS) rates will boost exports of garments and made-ups.
Garment exporters' body AEPC said the increase in MEIS rates will help in the fulfilment of orders for the Christmas festival as it will help in unblocking the blocked capital.
The ministry said the notification of post-GST RoSL rates for rebate of state levies/taxes is in pursuance of the decision of the government to boost exports and employment generation in the labour intensive textiles and apparel sector.
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The Directorate General of Foreign Trade (DGFT) has enhanced rates for garments and made-ups to 4 per cent of value of exports from 2 per cent under MEIS. New MEIS rates are effective from November 1.
In another tweet, the minister said the enhanced MEIS rates will further boost exports of garments and made-ups from India.
Under the MEIS scheme, the commerce ministry gives duty benefits to several products. It provides duty benefits at 2 per cent, 3 per cent and 5 per cent depending upon the product and country.
The DGFT said the rates for incentives under MEIS for two subsectors of textiles industry -- readymade garments and made-ups -- have been enhanced to 4 per cent of value of exports with effect from November 1 till June 30 next year.
Commenting on the measures, H K L Magu, Vice Chairman of AEPC, said the garment exporters' body has been demanding the increase in rates of MEIS along with RoSL and duty drawback from a long time.
"We are also hopeful that the government will intervene and address the issue of restoration of the old duty drawback rates as the sharp reduction in the rates of duty drawback has dealt a huge blow on the competitiveness of the industry," he said.