Home / Knowledge / News / Textiles / FTP should offer logic-based incentives - TEXPROCIL
FTP should offer logic-based incentives - TEXPROCIL
Jul '14
Top office bearers of a Mumbai-based top textile trade body recommend that the Foreign Trade Policy (FTP) should offer logic-based incentives as opposed to lobbying-based, but strictly in accordance to the stated objectives.

This, they add, will substantially increase India’s exports and net foreign exchange earned besides creating hundreds of thousands of additional jobs without increasing the overall outflow of incentives.

Office bearers of TEXPROCIL led by Mr Manikram Ramaswami – Chairman, Mr RK Dalmia - Deputy Chairman, Mr Ujwal Lahoti - Vice Chairman, Mr S Rajagopal – Executive Director and also Ms. Kiran Soni, Textile Commissioner, said this while addressing a press conference held in Mumbai yesterday.

According to these top TEXPROCIL officials, the FTP is framed on four broad objectives; maximize India's forex earnings for a given incentive outflow; create maximum number of jobs for a given incentive outflow; incentivize exports of products / commodities that has head room to grow; incentives should increase exports and not merely add to the bottom line of exporters and incentives should offset the extra freight costs incurred while exporting to distant markets.

“On all four points, textile exports, be it yarns, fabrics or apparels deserve higher incentives than engineering exports and electronic assembled products, etc. as textiles has near zero import content, against 25% to 90% import content in the above mentioned products”, they said.

They added, “Textiles create 10 to 20 times more jobs than these non-textile goods and that too, in tier III & IV towns for unskilled persons of both sexes. Share of Indian textile exports in global textile trade is around 10%, which leaves headroom of 90% growth, should Indian exporters become price competitive and displace competitors from the neighbourhood.

“Textiles have lower FOB value and therefore suffer higher logistic costs in percentage terms and therefore deserve a higher percentage as Focus Market incentives to offset the extra freight cost than other non-textile products. However, the reality is that the FTP is not implemented as per stated objectives and textiles enjoy lowest instead of highest incentives.”

They conclude by saying, “Following the policy with a logic of giving higher incentives where there is a lack of level playing field will go a long way to increase India’s exports".

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Textiles | On 27th Jun 2017

Barcelona’s Unitin develops recycled Indigo yarns

Unitin, a trademark of Industrias Morera SA and a leading textile...

Information Technology | On 27th Jun 2017

ThreadSol to bring fabric solutions to Thailand

ThreadSol, an enterprise material management provider for the sewn...

Interviews View All

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


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