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Ensure continuance of MEIS: TEA tells govt

Mar '19
Pic: Pixabay
Pic: Pixabay
The Tiruppur Exporters’ Association (TEA) has urged the Indian government to ensure continuance of incentive at 4 per cent under the Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20). TEA has sought continuance of the scheme until the government signs free trade agreements (FTAs) with the EU, Canada and Australia.

In May 2018, the Directorate General of Foreign Trade (DGFT), under the ministry of commerce and industry, had extended the incentive under the MEIS beyond June 30, 2018. However, there was no mention of the period till when it was extended. So, there is ambiguity about the continuance of MEIS further to complaint lodged by US, EU and Russia with the World Trade Organization (WTO), TEA president Raja M Shanmugham said in a press release.

“The US government has already started taking steps for protection of its industry and also promotion of its exports and economy,” Shanmugham said. In this scenario, TEA has requested the textiles minister Smriti Irani to spearhead the initiative to protect India’s textiles industry and for sustenance of its exports, since the discontinuance of MEIS will make it difficult for the exporting units to sustain in the market.

“We need a level playing field to enhance our share in the major markets. As the garment exporting units are deprived of getting competitiveness, we request the minister to kindly use her good offices with the Union minister of commerce and industry and ensure the continuance of MEIS till FTA is signed with the EU, Canada and Australia,” Shanmugham said.

He added that TEA members are taking various measures to enhance their efficiency and simultaneously cutting down the cost wherever possible in their functional areas. (RKS)

Fibre2Fashion News Desk – India

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