1 / 6

Textile Exports Win Big with Duty Credit Scrip Boost!

Discover how Duty Credit Scrip is powering Indiau2019s textile exports by cutting costs, boosting profits, and giving global competitors a run for their money!

dgftguru
Download Presentation

Textile Exports Win Big with Duty Credit Scrip Boost!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How Duty Credit Scrip Benefits the Indian Textile and Apparel Export Industry www.dgftguru.com

  2. How Duty Credit Scrip Benefits the Indian Textile and Apparel Export Industry India’s textile and apparel export industry plays a vital role in the country’s economy, contributing significantly to employment and foreign exchange earnings. To promote exports and enhance competitiveness, the Indian government has introduced various schemes under the Foreign Trade Policy (FTP). One such powerful incentive is the Duty Credit Scrip. This article explores how Duty Credit Scrip benefits the textile and apparel sector in India. dgftguru.com

  3. What is a Duty Credit Scrip? A Duty Credit Scrip is a trade incentive issued by the Directorate General of Foreign Trade (DGFT) under various export promotion schemes such as the Merchandise Exports from India Scheme (MEIS), Service Exports from India Scheme (SEIS), and the Remission of Duties and Taxes on Exported Products (RoDTEP). Exporters can utilize these scrips to pay customs duties, safeguard duties, and anti-dumping duties. Key Benefits for the Textile and Apparel Export Industry 1. Reduced Import Cost of Raw Materials Textile and apparel manufacturers often import raw materials like cotton, yarn, dyes, and machinery. Duty Credit Scrips help reduce customs duties on these imports, cutting down production costs and enhancing profit margins.

  4. 2. Boosts Export Competitiveness Lower input costs lead to more competitively priced products in the global market. With international buyers being price-sensitive, Duty Credit Scrips give Indian exporters a competitive edge over countries like Bangladesh, Vietnam, and China. 3. Improved Cash Flow Instead of paying customs duties upfront, exporters can use Duty Credit Scrips, thereby improving liquidity and reducing the burden on working capital. This is especially beneficial for MSMEs in the textile sector that operate on tight margins. 4. Encouragement for Value Addition Exporters are encouraged to focus on high-value products since the incentive is based on the FOB (Free on Board) value of exports. This pushes the industry toward innovation and better quality, strengthening the 'Make in India' initiative.

  5. 5. Transferability of Scrips Duty Credit Scrips are transferable, meaning exporters who don’t use them can sell them to others. This provides flexibility and creates an additional source of revenue. Conclusion The Duty Credit Scrip scheme is a significant policy tool that empowers the Indian textile and apparel export industry. By lowering input costs, boosting liquidity, and encouraging competitiveness, it strengthens India’s position in the global textile trade. With proper utilization and awareness, exporters can maximize these benefits and contribute to the sector’s sustainable growth.

  6. THANKYOU For More Info www.dgftguru.com

More Related