The ailing domestic textile industry is disappointed with the Foreign Trade Policy as it does not contain specific measures for the industry, though the general incentives would benefit the textile industry also.
The Foreign Trade Policy (2009-2014) announced by the ministry of commerce has introduced an export promotion capital goods (EPCG) scheme at zero duty. The scheme is available till march 2011 and would help technological upgradation of some of the major exports sectors such as engineering & Electronics, textiles and handcrafts.
The initiative, however, failed to impress the textile exporters. The zero duty under EPCG Scheme for textile and apparel will not benefit small and medium exporters as it excludes current beneficiaries under the Technological Upgradation Fund Scheme (TUFS) said Rakesh Vaid, chairman, Apparel Export Promotion Council (AEPC).
According to the policy statement, although the zero duty EPCG scheme will be available for engineering and electronic products, basic chemicals and pharmaceuticals, apparels and textiles, handicrafts and leather products, it will exclude exporters who have availed the TUFS scheme of the ministry of textiles.
The industry was also unhappy that the duty drawback rates had not been raised. The clauses under the FTP policy for textile sector is too little and too late. ... The duty drawback rates have not been increased. Just extending it would not solve the problems of the industry, said Deepak Seth, chairman of House of Pearls, a multinational apparel manufacturing conglomerate.
The handicrafts industry was largely satisfied with the policy and expects it to help enough to arrest the declining trend of handicrafts export.
