Indian Textiles Ministry seeks financial package in FTP

05 Apr '13

2 min read

The Ministry of Textiles, Government of India, has sought a financial package for labour-intensive industries like cotton textiles, handlooms and handicraft, in the forthcoming annual supplement to Foreign Trade Policy (FTP), rescheduled to be released in the third week of this month, according to The Hindu.

The Textiles Ministry’s proposals, submitted to the Ministry of Finance and the Board of Trade (BoT), are aimed at giving a boost to exports of cotton textiles, garments, handlooms and handicrafts, in view of these products facing severe competition in various markets.

The Ministry has also sought that the two percent interest subvention scheme be continued in 2013-14, as it would benefit the exporters and increase their competitiveness, particularly when exports are not showing any visible signs of recovery and exporters are facing severe competition in several markets.

In its proposal, the Textiles Ministry urged BoT to increase the duty credit equal to two percent of the value of handloom export, which is in place since August 2009, to five percent. This would ensure proper remuneration for actual handloom producers, and encourage them to continue the trade, the Ministry said.

The Ministry has also pleaded for including Canada, Russia, Australia, Portugal, South Africa and Romania under the Focus Market Scheme (FMS), as this could greatly boost handloom exports.

Further, the Ministry has also sought that handloom exports be entitled for triple weightage of exports made for grant of star export house status.

It has also sought customs duty exemption of import of machinery and equipment for cabinet dyeing using hand yarn.

Fibre2fashion News Desk - India

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