Home / Knowledge / News / Textiles / India may phase-out subsidies for textiles exports

India may phase-out subsidies for textiles exports

30
May '12
India may gradually eliminate export subsidies to the textile industry and may initiate talks with other countries to ensure that the country's key export sector does not lose out its competitiveness while the subsidies are removed.

Such an exercise is necessitated by the subsidies and countervailing measures agreement of the World Trade Organization (WTO). The agreement allows developing countries to give subsidies as long as the exports from that particular sector constitute less than 3.25 percent of world trade.

India's share has been higher than 3.25 percent in world textiles trade for five years and hence, the country needs to remove the subsidies given to the textiles sector by 2015, as the WTO agreement provides eight-year time period to do so.

“India has crossed the threshold level of 3.25 percent of world trade in textiles and clothing, and therefore, the US and other countries think we are not eligible to extend any subsidies on our exports of textile products,” Mr. DK Nair, Secretary General, Confederation of Indian Textile Industries (CITI) told fibre2fashion.

As per the WTO agreement, any concession/facility that is available to exporters, but is not available to suppliers of the same product to the domestic market, can be interpreted as an export subsidy.

Any facility/concession that stipulates export as an eligibility criterion is also an export subsidy. Hence, SEZ, EOUs, EPCG licenses, Focus schemes, interest subvention on export credit, advance licenses, etc. also come under the definition of export subsidies.

“If India is forced to accept that we have reached export competitiveness in textile products, these products may have to be taken out from concessions/ subsidy schemes over a period of time,” says Mr. Nair.

“Under the WTO provisions, there are procedures for deciding whether India has achieved the threshold limit for textiles and apparel exports in world trade. The issue is subject to negotiations bilaterally and in WTO forums,” he adds.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 2nd Aug 2021

Vietnam surpasses Bangladesh as 2nd biggest garment exporter: WTO

Bangladesh recently lost its rank as the second largest apparel...

Pic: Shutterstock

Textiles | On 2nd Aug 2021

Euro zone economy expands by 2% in Q2 2021: Eurostat

The 19-member euro zone financial system expanded by 2 per cent in...

Pic: Shutterstock

Textiles | On 2nd Aug 2021

US real GDP increases at annual rate of 6.5% in Q2 2021: BEA

US real gross domestic product (GDP) increased at an annual rate of...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Multi-functional garments will be next big thing

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

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

Noemi Sanchez,

Noemi Sanchez

Established since 1846, Evlox is a specialised denim manufacturer with its ...

Aashumi Mahajan,

Aashumi Mahajan

Luxe Maison is a premiere haute couture e-boutique established after 2015. ...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

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


July 2021

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


Advanced Search