The textile manufacturers of India have welcomed the Annual Supplement to Foreign Trade Policy (FTP) 2013-14 announced by the Union Minister of Commerce, Industry and Textiles Anand Sharma.
In the Annual Supplement to FTP, the Minister announced extension of zero duty Export Promotion Capital Goods (EPCG) scheme beyond March 31, 2013. Further, the exporters who have availed benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles can also avail the benefit of Zero duty EPCG Scheme.
Secondly, the Government has announced that the benefit of 2 percent interest subvention scheme could be available upto March 31, 2014 for certain specific sectors like Handicrafts, Handlooms, Carpets and Readymade Garments.
The Government has also widened the scheme to include items covered under Chapter 63 of ITC (HS), which includes made up textile articles, for the period from May 1, 2013 to March 31, 2014.
Speaking to fibre2fashion, secretary general of Confederation of Indian Textile Industry (CITI), Mr. DK Nair said, “The Annual Supplement is very positive in overall terms for the textile industry. Extending the zero duty EPCG scheme to TUFS beneficiaries is a long standing and important demand of the textile sector that has now been accepted.”
“Inclusion of made ups for interest subvention on export credit and extending the subvention by a year will be of immense help to the textile industry,” he continues.
According to him, the expansion of Focus Schemes has taken into account the interests of the textiles sector significantly. “The procedural simplifications and the continued focus on transaction costs would also be helpful to this highly export oriented industry,” he adds.
Echoing him, Mr. S Dinakaran, chairman of the South India Mills Association (SIMA), said in a release, “We welcome the reinstatement of TUF benefit for the Zero Duty EPCG Scheme beneficiaries.”
“The extension of 2 percent interest subvention credit up to March 31, 2014 and inclusion of made-ups for the benefit would greatly help the Indian textiles and clothing industry to remain competitive in the global market,” he mentions.
Mr. Ashok Jaidka, chairman of Wool & Woolens Export Promotion Council (WWEPC), says, “The Government has announced the right policy at the time of global recession to boost exports.”
“The extension of 2 percent interest subvention credit up to one year and inclusion of made-ups is a long-standing demand by the garment exports which has been accepted now,” says Mr. Lalit Goel, general secretary and vice-president of Panipat Exporters Association.