Home / Knowledge / News / Textiles / Textile trade bodies slam new FTP
Textile trade bodies slam new FTP
03
Apr '15
The new Foreign Trade Policy has come under fire from two major textile trade bodies. The  Confederation of Indian Textile Industry or CITI says the new policy has not provided any additional benefits to the textiles sector, though measures announced for improving ease of doing business and simplified procedures would be beneficial to the textile sector. In a statement CITI chairman Prem Malik pointed out that some benefits for the textile sector have been removed or scaled down.
 
While he welcomed the government’s announcement that the policy will have continuity during the 5 year period and only a midterm review will be made, he said that while amalgamating Focus Schemes and the other Chapter 3 schemes into Merchandise Exports from India Scheme (MEIS), cotton yarn has been completely ignored. Chapter 3 benefits on cotton yarn had earlier been withdrawn when cotton yarn was brought under Restricted List. After withdrawing the requirement of registration of export contracts, this product had been brought under Free List, but Chapter 3 benefits were not restored under the earlier FTP. This anomaly has not been corrected under the new policy either.
 
Man-made fibre yarn as well as woven and knitted fabrics have been provided 2 per cent reward in the EU, the US, Canada and Japan. This would mean that these products would not be eligible for any reward under MEIS in China, Bangladesh, Sri Lanka, Turkey, Vietnam, South Korea etc. which are the major destinations for these products. In the case of made ups and garments also, only 2 per cent reward has been provided for the same countries. Man-made fibres used to get benefits under Focus Schemes, but do not have any under MEIS.
 
Thanking the commerce and industry minister for continuing EPCG scheme and reducing the export obligation marginally for domestically procured capital goods under the scheme, Malik stated that this is a welcome step both for the textile and machinery industries.
 
The Foreign Trade Policy Statement, released along with the FTP, talks about providing interest subvention on identified sectors for a period of three years. The sectors have not been indicated and no definitive announcement of the subvention has been made. “I hope textiles will find a place when the announcement comes,” said Malik.
 
Another textile trade body, the Southern India Mills Association (SIMA) said the FTP failed to address sector specific issues although it had constructive policies on a macro level. The Association pointed out that the Indian textile industry, which provides jobs for over 105 million people, has been demanding a slew of measures in the Foreign Trade Policy to have a level playing field in the emerging markets. The Union Budget has not considered the demands of the mother industry except extending the optional Cenvat route for cotton textiles.


Must ReadView All

Apparel/Garments | On 25th Sep 2017

AAFA urges US govt to plug lacunae in military procurement

The American Apparel & Footwear Association (AAFA), an alliance of...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Apparel/Garments | On 25th Sep 2017

65% retailers to offer same day delivery in 2 years: BRP

About 65 per cent retailers plan to offer same day delivery within...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Steve Cole
Xerium Technologies

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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