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Texprocil welcomes rise in drawbacks & caps for made ups
08
Nov '16
Under a new notification released by the government of India on October 31, 2016, it has revised duty drawback rates. The drawback rates and caps have been increased for made ups, both made of pure cotton as well as cotton blended with manmade fibre. However, drawback rates and caps for various cotton yarns have been retained with no significant reductions.

“The revised drawback rates will certainly give a boost to exports of cotton textiles,” RK Dalmia, chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL) said. “They will provide adequate neutralisation of the incidence of duties and taxes on the export goods, and make them more competitive in the international markets.”

According to Dalmia, this is a step in the right direction as it will promote exports of value added products in line with the stated policy of the government.

Dalmia however pointed out that there should have been some increase in the drawback rates for fabrics, as India is fast emerging as a manufacturing hub for these items. (AR)

Fibre2Fashion News Desk – India


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