India:Annual Supplement disappoints garment exporters

“The Annual Supplement to the Foreign Trade Policy 2008 announced by Shri Kamal Nath, Union Commerce & Industry Minister, has not provided any specific proposal or export promotion strategy to reverse the recent downturn in garment exports and has therefore, not come up to expectations of the Garment Exporting Community.
The Commerce and Industry Minister has not given due consideration to various representations submitted by the garment exporters for grant of adequate commercial relief to meet the new challenges of increasing international competition as the policy has failed to provide any fresh incentive to Textile Industry in general and garment sector in particular.
The exporters have not been fully compensated for the adverse impact of rupee appreciation and higher transaction cost which adversely affected the growth rate of export and profit margin of exporters.
Garments Exporters were expecting some new commercial and fiscal relief to help them to overcome the present crisis which has seriously affected their competitiveness in the International market.
However, the extension and expansion of two major initiatives, the “Focus Product Scheme” and the “Focus Market Scheme”, continuation of interest subvention to exporters and DEPB Scheme till 31st March, 2009 and measures to cut-down the transaction costs and time for exporters and importers are steps in right direction.”