>>
Home / Knowledge / News / Leather & footwear sector reaps gains in foreign trade policy

Leather & footwear sector reaps gains in foreign trade policy

28
Aug '09
The Commerce Minister of India, Mr Anand Sharma announced the new foreign trade policy. The new policy aims to revitalise the export sector of the country which has been seriously affected by the recessionary trends and accompanying slowdown in global markets, particularly the key markets of US, EU and Japan.

A special thrust has been reserved for labour intensive sectors like textiles, leather and handicrafts in the new policy, in the process reassures the exporters and provides them adequate confidence to maintain their market presence even in a period of stress.

A committee has been constituted with Finance Secretary, Commerce Secretary and Chairman IBA to ensure that dollar credit needs of exporters are met in a timely manner and the committee would meet periodically for this purpose.

Technological up-gradation of exports is sought to be achieved by promoting imports of capital goods for certain sectors under EPCG at zero percent duty. Under the present Foreign Trade Policy, the government recognizes exporters based on their export performance and they are called 'status holders'.

For technological up-gradation of the export sector, these status holders will be permitted to import capital goods duty free (through additional Duty Credit Scrips equivalent to 1% of their FOB value of export in the previous year, of specified product groups). This will help them to upgrade their technology and reduce cost of production. These two schemes would be valid up to 31st March 2011.

To insulate Indian exports from the decline in demand from developed countries, the policy focuses on diversification of Indian exports to other markets, especially those located in Latin America, Africa, parts of Asia and Oceania and to achieve diversification of Indian exports, 26 new countries have been included within the ambit of Focus Market Scheme and the incentives provided under Focus Market Scheme have been increased from 2.5% to 3%.

There has been a significant increase in the outlay under 'Market Linked Focus Product Scheme' by inclusion of more markets and products. This ensures support for exports to all countries in Africa and Latin America.

EPCG Scheme at zero duty has been introduced for certain engineering products, electronic products, basic chemicals and pharmaceuticals, apparel and textiles, plastics, handicrafts, chemicals and allied products and leather and leather products and the existing 3% EPCG Scheme has been considerably simplified, to ease its usage by the exporters.

The Government recognized 'Status Holders' contribute approximately 60% of India's goods exports. To incentivise and encourage the status holders, as well as to encourage Technological up-gradation of export production, additional duty credit scrip at 1% of the FOB of past export shall be granted for specified product groups including leather, specific sub sectors in engineering, textiles, plastics, handicrafts and jute.


Must ReadView All

Pic: Simba3003 | Dreamstime.com

Textiles | On 8th Dec 2021

Euro area economy is recovering rapidly since Q2: IMF

Thanks to high vaccination levels and continued forceful policy...

Pic: Moreno Soppelsa | Dreamstime.com

Textiles | On 8th Dec 2021

US manufacturing activity grows for 18th consecutive month in November

Economic activity in the US manufacturing sector grew in November,...

Pic: Jurgita Juoniene | Dreamstime.com

Apparel/Garments | On 8th Dec 2021

VITAS foresees Vietnam’s apparel exports growth in 2021 & 2022

The Vietnam Textile & Apparel Association (VITAS) has forecast the...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Fabric selection & recommendation based on client's brief

Textile Industry, Head honchos

Textile Industry
Head honchos

Ensured payment of fee was least concern for students

Gaurav Davda, Jindal Worldwide Ltd

Gaurav Davda
Jindal Worldwide Ltd

Indian MMF sector to become globally competitive

Susan Bhaktul,

Susan Bhaktul

Established in 2000 as a liaison with the Government of India, Industree...

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

Dr. Sean Blamires, Evolution and Ecology Research Centre

Dr. Sean Blamires
Evolution and Ecology Research Centre

Using spider silk for clothing may not seem to be an attractive...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

Bav Tailor, Label Bav Tailor

Bav Tailor
Label Bav Tailor

Born in London and Indian by origin, <b>Bav Tailor </b>is the Founder of...

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

Leave your Comments


December 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search