India : FTP continues to rile textile sector

InquiryNow

Please fill in your details to download the Table of Contents of this report for free. We also do customization of these reports so you can write to us at mi@fibre2fashion.com in case you need any other additional information.

Name

Company

Phone Number

Country

Comments

Advanced Search

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

More Textiles News - India...

Must ReadView All

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Suresh P Bagrecha

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

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Suresh Patel
Sidwin Fabric

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Wendell Rodricks
Wendell Rodricks

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

Press Release

Letter to Editor

RSS Feed

Search Companies

Leave your Comments

April 2018

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 Skip

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

Yes No Skip

Active Poll

Do you see sustainability as a route to business growth?

Yes

69.9%

12.6%

Skip

17.5%

Total Votes: 103

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

Yes No Skip

Active Poll

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

Yes

63.1%

29.1%

Skip

7.8%

Total Votes: 103

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

Yes No Skip

Active Poll

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

Yes

87.4%

8.7%

Skip

3.9%

Total Votes: 103

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

82.5%

7.8%

Skip

9.7%

Total Votes: 103

E-News Insight

Subscribe Today and Get the
Latest News Update in Your Mail Box.