Home / Knowledge / News / Textiles / Textile trade bodies slam new FTP
Textile trade bodies slam new FTP
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 Chapter 3 benefits on cotton yarn had earlier been withdrawn when cotton yarn was brought under Restricted List.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

Textiles | On 27th Oct 2016

Garmon Chemicals partakes in Kingpins denim show

Garmon Chemicals, leader in innovative chemical auxiliaries and...

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Steve Cole
Xerium Technologies

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search