TEXPROCIL welcomes Foreign Trade Policy

31 Aug '09

2 min read

Reacting to the announcement of new Foreign Trade Policy Shri V.S. Velayutham, Chairman, Texprocil said that "We welcome the Foreign Trade Policy which incorporates various measures aimed at helping the sagging textile exports from India. However, a lot more could have been done considering the steep decline in T&C exports from India during recent times. Indian textile industry was expecting a lot for value added textile sector such as Cotton fabrics and Cotton Madeups.”

“The ambitious targets set up by the government in the New Policy such as achieving an annual export growth of 15% with an export target of US$ 200 billion by March 2011 and the long term goal of doubling India's share in global trade by 2020 are possible to achieve only when due importance is given to the Textile export sector" he said.

While expanding the Market Linked Focus Product Scheme (MLFPS), products such as Madeups, Knitted and Crocheted fabrics, Synthetic Textile fabrics have been included in the scheme. Other textile products of great export value such as Woven fabrics and Denim should also have been included in the scheme. The government should not have linked the additional duty credit scrip of 1% given to the "status holders" with the Technological Upgradation Fund Schemes (TUFS), as this will impact much needed modernization of manufacturing facilities.

He urged the government to upwardly revise the DEPB rates for fabrics taking into account realistic value addition norms and exhaustive data submitted to the DGFT in this regard. Cautioning on the extensive support to the T&C sector in Pakistan in its First-ever Textile Policy announced recently, Shri Velayutham said "Our government will have to do a lot more for the textile sector without which it would be difficult to maintain our competitiveness considering the huge incentives provided to our exporters in competing countries.

It may be recalled that Pakistan's Textile Policy envisages increasing textile exports to the tune of US$25 billion by the year 2015 from the existing US $10 billion and has made provision for huge subsidies and incentives worth Rs 42 billion during the fiscal year 2009-10 alongwith subsidised export refinance at a reduced rate of 5 percent.

Cotton Textiles Export Promotion Council (TEXPROCIL)

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