Topic

The Central government has recently announced sops worth Rs 8,000 crore during the mid-term review of the Foreign Trade Policy (FTP) 2015-20. How will this benefit the textile and apparel industry?

The mid-term review of FTP is progressive, growth oriented.
Incentives worth Rs 8,000 crore, focus on micro, small and medium enterprises (MSMEs), labour-intensive segments and the agriculture sector, and a self-certification scheme for duty-free imports are some of the highlights of the mid-term review document of India’s FTP released by the Directorate General of Foreign Trade (DGFT). Fibre2Fashion presents views of some of the textile and apparel organisations.

 

Garment exports from the country have been declining steeply for several months and there are no signs of an early revival of overseas demand. In such a situation, the measures included in the mid-term review for facilitating exports and improving ease of doing business will be of great help.

Extension of period for using scrips from 18 months to 24 months, coupled with zero rating of GST on the sale of scrips, exporters will now be able to effectively and completely use the scrips.

The mid-term review of FTP is progressive, growth oriented and I am glad that the Government has recognised the urgent need to address the challenges being faced by the exporters on account of the roll out of the GST regime by focussing on reducing procedural burden.

The revised FTP has introduced a new scheme known as Self Ratification Scheme under which Advance Authorizations will be issued to eligible exporters in those cases where there are no SION/valid adhoc norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process on the basis of self-declaration. The textiles sector, especially technical textiles sector, will benefit immensely from this scheme.

We welcome the new measures announced during the mid-term review of FTP 2015-20. It has made provisions which will boost trade facilitation and ease of doing business. The extension of validity of scrips from 18 months to 24 months along with the provision of zero GST on sale of scrips are surely going to help the industry in a big way. The other initiatives like the doing away with the testing of samples for drawback purpose and the introduction of e-sealing facility for exporters will lead to quick clearances of the consignment. This will not only help in easing the port congestion but will also aid in quick movement of the cargo. However, the exporters were hoping for measures which improve market access and cost competitiveness.

The mid-term review of FTP 2015-2020 has given thrust of ease of doing business, ease of trading across Borders, exploring new export markets, new export products, simplification of procedures and processes and establishing National Trade Facilitation Committee headed by Cabinet Secretary to boost exports. Further, 24x7 customs clearance extended to 19 sea ports and 17 air cargo complexes would help the exporters.

 

Published on: 19/12/2017

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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