The Indian government has launched a raft of new initiatives to help the country's textile sector, which it says is "reeling under [global] economic uncertainty" and domestic pressure.
The new Special Bonus Benefit Scheme is a part of the supplement to the foreign trade policy 2009-14 outlined last week by textiles minister Anand Sharma. The export promotion package includes a number of incentives for the six months to 31 March 2012.
Specific measures for the apparel sector include an extension of the market linked focus product scheme (MLFPS) for apparel exports, as well as 2% duty credit for shipments to the US and EU.
And 130 new items - including textiles - have been added to the focus product scheme, which will qualify for 2% duty credit on their FOB value. Polyester yarn, denim fabric, unbleached or bleached cotton fabrics, and knitted and dyed cotton fabrics are now covered.
The government says the apparel sector will get extra help after exports to the US fell 36.4% in the six months to the end of September, compared with the same period last year. Shipments to the EU tumbled 24% in the same period.
"This sector has high potential to achieve higher level of exports and generate great employment opportunities," Sharma said. He added that the US and EU "are also our major markets and these two countries are having their own myriad problems at present."
In a further bid to boost exports and expand into new markets, 41 countries in Africa, Latin America, Oceania and Central Asia now qualify for an extra 1% duty credit on the total value of exports.
Source : just-style.com