Textile mills welcome FTA announcements

.... 20 April, 2013 by admin

  The textile mills here have welcomed the announcements in the annual supplement to the foreign trade policy saying that these will improve textile and clothing exports.

According to the Chairman of the Southern India Mills’ Association S. Dinakaran, the Union Budget this year had a special package for the textile industry. The annual supplement announced on Thursday has several schemes to boost textile exports.

During the calendar year 2012, cotton yarn, fabric and made-ups have seen substantial progress in exports. Extension of two per cent interest subvention on export credit till the end of March 2014, inclusion of more textile products under the focus product scheme, market linked focus product scheme and extension of the incremental export incentivisation scheme till the end of this financial year will improve the performance of the textile sector.

Chairman of the Confederation of Indian Textile Industry S.V. Arumugam has said in a release that extending zero duty export promotion capital goods scheme benefit to the beneficiaries of the technology upgradation fund scheme is one of the requests of the industry and the announcements have provided it.

Tirupur Staff Reporter adds:

Knitwear exporters in Tirupur cluster have also hailed the host of incentives announced by the Union Commerce Minister Anand Sharma. Some of the major relieves were the extension of the two per cent interest subvention scheme available to certain specific sectors like readymade garments till March 31, 2014, and the harmonisation of zero duty Export Promotion Capital Goods (EPCG) and three per cent EPCG schemes into one scheme. “This is a good move as the quantum of obligations has come down from eight times to the present six times,” S. Dhananjayan, an industry consultant and senior member of Institute of Chartered Accountants of India, told The Hindu .

President of Tirupur Exporters’ Association A. Sakthivel and founder-member of Tirupur Exporters and Manufacturers Association R. Girish hailed the move to include Norway under the Focus Market Scheme.