Several provisions are included in the Foreign Trade Policy 2009-14, for providing incentives to the Textiles & Clothing sector exports which includes incentives for exports to focus markets and focus products, interest subvention on pre-shipment credit, duty-free import of trimmings etc. required by the garmenting industry and duty-free import of tools by the handicrafts industry.

The measures taken by the Government to assist Indian apparel export companies to increase their export are (I) 2% interest subvention scheme on readymade garment sector extended up to March’2014. (ii) Additional incentives for incremental exports to the US, European Union and Asian countries.(iii) Additional duty credit of 2% of FOB value given on export of certain knitwear apparels for the year 2013-14.(iv) Inclusion of new Markets such has New Zealand, Cayman Islands, Latvia, Lithuania and Bulgaria under Focus Market Scheme. (v) 2% market Linked Focus Product Scheme for USA and EU extended up to 31st March, 2013. (vi) Use of Focus Market Scheme, Focus Product Scheme, status holder incentive scrip and MLFPS for payment of excise duty for domestic procurement. (vii) Extension of Zero duty EPCG scheme up to 31st March, 2013.

The Plan of action prepared by Government to boost the apparel exports from India are (a) Continuation of MAI (Market Access Initiatives) and MDA (Market Development Assistance) to apparel export for market diversification and to increase their share in world trade (b) Skill development programme under ISDS to make available skill workforce to apparel export sector and (c) Assistance under Technological Up gradation Fund Scheme (TUFS).

Ministry of Textiles