Home / Knowledge / News / Textiles / Indian govt may focus on incentivising textile production
Indian govt may focus on incentivising textile production
05
Jan '15
Keen on honouring its World Trade Organisation (WTO) commitments on subsidies, the Government of India may shift its focus from incentivising textile and garment exports to incentivising their production in the upcoming Foreign Trade Policy.
 
Article 27.6 of WTO’s ‘Agreement On Subsidies And Countervailing Measures’ states, “Export competitiveness in a product exists if a developing country Member’s exports of that product have reached a share of at least 3.25 percent in world trade of that product for two consecutive calendar years.”
 
According to WTO International Trade Statistics, India’s share in global textile and clothing trade has remained above 3.25 per cent since 2005. By this count, India should end its export subsidies for textiles and apparel by 2015.
 
But, the WTO asked India to consider phasing out subsidies for textiles and garments only in 2010. This gives a few years’ grace period for India, as the WTO’s Article 27.6 adds, “Export competitiveness shall exist either (a) on the basis of notification by the developing country member having reached export competitiveness, or (b) on the basis of a computation undertaken by the (WTO) Secretariat at the request of any member.”
 
Meanwhile, the Indian Government believes that some of the items in the textile and garment group may not have attained export competitiveness, and has sought clarification from the WTO on the definition of ‘product’ under the agreement.
 
The Indian Government currently provides export subsidies for textiles and apparel under various schemes like the Focus Market Scheme, Focus Product Scheme, Export Promotion Capital Goods Scheme, interest subvention on pre- and post-shipment export credit as well as tax breaks for special economic zones.
 
Since the WTO agreement does not prohibit production-based subsidies, which fall in the ‘actionable’ category, the Government of India is likely to shift focus from the current policy of giving incentives for exports to a policy that boosts production, in its upcoming Foreign Trade Policy.
 
However, under the ‘actionable’ category, other countries would be able to impose countervailing duties on import of items that get production-linked incentives.
 
The ministry of textiles already runs some schemes meant for incentivising production, such as the Technology Upgradation Fund Scheme (TUFS), which can be continued. (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Aura Blockchain Consortium

Fashion | On 21st Apr 2021

LVMH, Prada and Cartier form world's first global luxury blockchain

Three major luxury names—LVMH, Prada and Cartier, part of...

Pic: Shutterstock

Textiles | On 21st Apr 2021

India-Bangladesh MoU on cooperation in trade remedial measures

India's Cabinet chaired by Prime Minister Narendra Modi has given its ...

Pic: Infinited Fiber Company

Textiles | On 21st Apr 2021

Infinited Fiber plans to build €220 mn flagship factory in Finland

Circular fashion and textile technology group Infinited Fiber Company ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Value of 'Made in India' should get more importance

Nina Smith,

Nina Smith

GoodWeave International, a nonprofit working to end child, forced and...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Prakhar Singh,

Prakhar Singh

Morgan Tecnica offers the largest and most modern range of solutions for...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

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

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

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


April 2021

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


Advanced Search