Home / Knowledge / News / Textiles / India may phase-out subsidies for textiles exports
India may phase-out subsidies for textiles exports
30
May '12
India may gradually eliminate export subsidies to the textile industry and may initiate talks with other countries to ensure that the country's key export sector does not lose out its competitiveness while the subsidies are removed.

Such an exercise is necessitated by the subsidies and countervailing measures agreement of the World Trade Organization (WTO). The agreement allows developing countries to give subsidies as long as the exports from that particular sector constitute less than 3.25 percent of world trade.

India's share has been higher than 3.25 percent in world textiles trade for five years and hence, the country needs to remove the subsidies given to the textiles sector by 2015, as the WTO agreement provides eight-year time period to do so.

“India has crossed the threshold level of 3.25 percent of world trade in textiles and clothing, and therefore, the US and other countries think we are not eligible to extend any subsidies on our exports of textile products,” Mr. DK Nair, Secretary General, Confederation of Indian Textile Industries (CITI) told fibre2fashion.

As per the WTO agreement, any concession/facility that is available to exporters, but is not available to suppliers of the same product to the domestic market, can be interpreted as an export subsidy.

Any facility/concession that stipulates export as an eligibility criterion is also an export subsidy. Hence, SEZ, EOUs, EPCG licenses, Focus schemes, interest subvention on export credit, advance licenses, etc. also come under the definition of export subsidies.

“If India is forced to accept that we have reached export competitiveness in textile products, these products may have to be taken out from concessions/ subsidy schemes over a period of time,” says Mr. Nair.

“Under the WTO provisions, there are procedures for deciding whether India has achieved the threshold limit for textiles and apparel exports in world trade. The issue is subject to negotiations bilaterally and in WTO forums,” he adds.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search