Home / Knowledge / News / Textiles / Dilemma on textile sector incentives in India's new FTP
Dilemma on textile sector incentives in India's new FTP
30
Sep '14
In view of India’s commitment to the World Trade Organization (WTO), there is a dilemma over providing incentives to the textile sector in the new Foreign Trade Policy (FTP), expected to be announced next month.
 
Article 27.6 of WTO’s ‘Agreement On Subsidies And Countervailing Measures’ states, “Export competitiveness in a product exists if a developing country Member's exports of that product have reached a share of at least 3.25 percent in world trade of that product for two consecutive calendar years.”
 
Indian textile sector crossed the 3.25 percent threshold in 2008-09, and hence it is required as per the WTO rules that the Government phases out the subsidies provided to the sector to boost its exports by 2018.
 
At present, the Indian Government provides incentives to the textile and garment sector under various schemes like the focus product scheme and focus market scheme.
 
The Indian textile and apparel industry is aware of the WTO commitment and is preparing itself for the imminent withdrawal of incentives by the Government. However, the debate is now on whether to withdraw the incentives in a phased manner till 2018 or all in one go in 2018, when the deadline ends.
 
The textiles and clothing industry is one of the mainstays of Indian economy, and it contributes about 13.25 percent to the country’s total exports basket.
 
In 2013-14, the textiles and garment industry realized export earnings of US$ 41.57 billion. During April-August 2014, India’s textile exports registered a growth of 9.5 percent year-on-year, while readymade garment exports grew at 17.7 percent.
 
To create an export-friendly economy, the Narendra Modi led government has proposed to extend 24/7 customs clearance facility at 13 airports and 14 sea ports resulting in faster clearance of import and export cargo.
 
The Government has also increased the duty free entitlement to garment exporters for import of trimmings, embellishments and other specified items from 3 percent to 5 percent. (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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