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 Chapter 3 benefits on cotton yarn had earlier been withdrawn when cotton yarn was brought under Restricted List.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

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

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'

Top executives
Textile industry, India

The event should be organised every year

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

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
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

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
9.6%
Skip
3.2%

Total Votes: 94

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
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


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