The predominantly cotton based textile industry in India faced a crisis during 2008-09 due to global recession and again a grave crisis during 2010-11 owing to high volatility in cotton prices and certain external factors.
The Government announced debt restructuring packages for both the recessions and the second time, it was exclusively for the textile industry amounting to Rs.35,000 crores. Added to this, Government also took various proactive measures to revive the industry from the recessions on a fast track mode in the last one year.
The Union Budget 2013-14 announced a special package for the textile industry to grab Rs.1,51,000 crores investments during the 12th Five Year Plan period and also improve its global competitiveness.
Now in the Annual Supplement to Foreign Trade Policy 2013-14, again the Government has come out with a basket full of schemes to improve textiles and clothing exports of the country. During the calendar year 2012 though most of the countries across the globe had a negative growth, India could sustain positive growth and particularly in cotton yarn, cotton fabric and cotton made-ups. It has made substantial progress with respect to cotton yarn exports during 2012-13 increasing the exports almost by 29% when compared to the previous year.
Mr.S.Dinakaran, Chairman, The Southern India Mills’ Association (SIMA) has hailed the Annual Supplement to Foreign Trade Policy 2009-14 announced for the year 2013-14, by the Government and thanked Mr.Anand Sharma, Hon’ble Union Minister for Commerce, Industry & Textiles for giving due weightage for the mother industry. Mr.Dinakaran has welcomed the reinstatement of TUF benefit for the Zero Duty EPCG Scheme beneficiaries.
He has further stated that the extension of 2% interest subvention credit up to 31.3.2014 and inclusion of made-ups for the benefit would greatly help the Indian textiles and clothing industry to remain competitive in the global market.
He has added that the inclusion of some more textile products under the Focus Product Scheme, Market Linked Focus Product Scheme and also the extension of Incremental Export Incentivization Scheme up to March 2014 would enable the textiles and clothing industry in the country to improve its export performance continuously.
SIMA Chief has thanked the Hon’ble Union Minister of Commerce, Industry & Textiles for including packing materials, embellishments, embroidery, sewing threads, poly/quilted bedding materials in the duty free import list up to a value of 1% of the FOB value for the made ups which would improve its competitiveness and encourage value addition and targeted selling the products to international bands.
Mr.S.Dinakaran has also welcomed the reduction of export obligation under EPCG scheme from eight times to six times. He has further welcomed the facility extended to close the cases of default in export obligation realising the difficulties faced by the industry. He has also hailed the various other benefits and simplification of procedures with regard to exports.
