The government is contemplating an individual incentive package specially for the made-up sector . This sector was secluded in the Rs 6,000 crore package that was given for the betterment of the textile sector in June this fiscal.
Union Textiles Minister Smriti Zubin Irani stated at the Cotton Textile Export Promotion Council (Texprocil) award ceremony that “Madeup is in active consideration for a special package in our ministry and is on the top of our list. We will shortly celebrate another Diwali for the madeup sector after the usual Diwali.”
On June 23, the centre had declared actions for textile sector for creation of 10 million jobs, pushing exports by $30 billion and investments of Rs 74,000 crore in coming three years. Cabinet also declared a package of about Rs 6,000 crore for bringing up the textile sector. This package is aiming at increasing competitiveness, increasing production and creation of jobs. This package did not have anything for the made-up sector.
“While the government has announced various measures to promote exports, there are certain areas that need to be addressed. The government should increase the entitlement under Merchandise Export Incentive Scheme (MEIS) for export of madeups to the European Union from 2 per cent to 5 per cent, to offset the adverse impact of the tariff preferences given to Pakistan, Bangladesh and Turkey. Also, there is a need to provide for a refund of state levies on exports of fabrics and madeups, as in the case of garments. Apart from that, there is an urgent need to extend the benefit of the three per cent interest equalization scheme and MEIS to export of cotton yarn,” told R K Dalmia, Chairman of Texprocil at the same ceremony.
“The Rs 6,000 crore package is not just a reflection of Prime Minister Narendra Modi’s commitment to the people of India for job creation but also reflective of his confidence in the textile industry,” said Smriti Irani.
The industry requested the minister for initiating talks on free trade agreement (FTA) with the European Union for making apparel exports duty free. Indian exporters loose competitiveness due to high duties by importing countries on textiles. “Indian textiles attract duties ranging between 9.6 per cent and 12 per cent in the EU as against ‘zero’ on imports from competing countries like Bangladesh, Pakistan, Sri Lanka and Vietnam. In China, Indian textiles attract duties ranging between 10 and 14 per cent. Turkey has imposed very high additional duty of 20 per cent in addition to the normal duty of 8 per cent on textiles imported from India. Indonesia has imposed safeguard duty on Indian cotton yarn. All these factors impact our export growth thereby, slowing down,” stated Dalmia.
The Indian textiles export saw a fall of 3.44% to $17.31 billion between April–September 2016 in comparison from last year. The minister told that many problems need to be addressed before initiating FTA talks.
Original Source: importexportmarketing.in
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