Home / Knowledge / News / Textiles / FTP continues to rile textile sector
FTP continues to rile textile sector
06
Apr '15
The government’s new Foreign Trade Policy has come under fire from two other constituents of the textile industry. The cotton textiles export promotion council or TEXPROCIL and the synthetic and rayon textile export promotion council (SRTEPC) have said that the textile sector has not got its due under the new FTP despite it being one of the largest employment providers in country, according to media reports.  
 
TEXPROCIL chairman RK Dalmia said that at a time when the textile sector which is amongst the most competitive sectors in the world is facing challenges of high tariffs barriers on account of preferential tariff arrangements has been granted duty scrips of 2 per cent only for mainstream cotton textile products but higher rates have been given for handlooms, carpets, coir products under the merchandise exports from India scheme (MEIS).
 
Sectors like cotton yarn have been totally ignored especially at a time when exports of these products have declined sharply and face high logistic cost when exported to markets like Latin America, Dalmia said.
 
The SRTEPC’s reaction was even more hard hitting. In a statement, it said that the agony of man-made textile industry which is highly capital intensive and the only sector capable of attracting FDI has been discriminated against vis-à-vis the cotton industry. The council said it was unfortunate  that a sector which can help the government achieve its ambitious target has not been mentioned in the list of items granted liberal MEIS benefits under the FTP announced on the first of this month.
 
The council also pointed out that the cotton textile sector, which pays no taxes, has still been treated favourably in the FTP’s new scheme, MEIS, while the MMF textiles that contributes Rs 7000 crore as taxes and holds high potential has been given lower reward. For Europe and the US, MMF products have been given lower incentives as compared to cotton textiles.
 
The council is particularly upset because the benefits for promoting exports to major emerging markets for MMF textiles such as Latin America, Far East and African countries have been completely stopped in the new FTP without giving the sector’s exporters any scope for adjustment. The statement said the sector needs incentives for a couple of years to establish and stabilise MMF textiles in emerging markets.
 
Last week, two other textile trade bodies – Confederation of Indian Textile Industry or CITI and the Southern India Millis Association (SIMA) had also criticised the FTP. While CITI said the new policy has not provided any additional benefits to the textiles sector and instead removed or scaled down benefits for the textile sector, SIMA said the FTP failed to address sector specific issues although it had constructive policies on a macro level. 
 

Fibre2fashion News Desk - India


Must ReadView All

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

S Korean fashion brands expand overseas amid slump at home

Fashion | On 17th Oct 2017

S Korean fashion brands expand overseas amid slump at home

South Korean fashion firms are keen on tapping into overseas markets...

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

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

Lynda Kelly
Suominen Corporation

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

October 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
76.9%
No
13.8%
Skip
9.2%

Total Votes: 65

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
61.5%
No
27.7%
Skip
10.8%

Total Votes: 65

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
84.6%
No
10.8%
Skip
4.6%

Total Votes: 65

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
73.8%
No
12.3%
Skip
13.8%

Total Votes: 65


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