Khadi gets separate unique HS code, export to get a boost

Source: IBEF.org, Nov 07, 2019

Khadi has once again come out of its customary veil, marking its presence in the 20191108-1exclusive HS code bracket, issued by the central government on 4th Nov’19 to categorize its products in export. In a long-awaited move to make export of Khadi, exclusively categorized from the general league of textile products, the ministry of commerce and industries has allocated separate HS code for this signature fabric of India this week.

Khadi and Village Industries Commission (KVIC) Chairman Vinai Kumar Saxena said that this decision of government will open a new chapter in the field of Khadi export. Earlier, Khadi did not have its exclusive HS code. As a result, all the data regarding export of this signature fabric used to come as a normal fabric under the textile head. Now, we will be able to keep a constant eye not only on our export figures, but it will also help us in planning our export strategies.

HS Stands for Harmonized System and it is a six-digit identification code. It was developed by the WCO (World Customs Organization) and custom officers use HS Code to clear every commodity that enters or crosses any international border.

Khadi and Village Industries products are eco-friendly and natural and are in great demand in the International Markets. Recognizing its potential to generate exports and its eco-friendly importance, the Ministry of Commerce had accorded deemed Export Promotional Council Status (EPCS) to KVIC in 2006, to boost the export of Khadi products. However, in the absence of separate HS code, the export of Khadi products was difficult to categorize and calculate.

The KVIC Chairman added that getting exclusive HS code would have remained a mirage for KVIC, had Union MSME Minister Shri Nitin Gadkari, Union Commerce Minister Shri Piyush Goyal and Union Finance Minister Smt Nirmala Sitaraman not taken personal interest in it.

Spate of global free trade pacts threaten Indian apparel exports

Source: The Hindu Business Line, Sept 24, 2019

Mumbai: Free trade agreements signed between major consuming countries and manufacturing countries pose a major challenge for Indian apparel exporters. This threat comes even as the growth in exports moved back to the positive zone after two years.

Continued access to export incentives remains crucial for the Indian apparel exporters to garner a larger pie of the global apparel trade, though recent measures announced by the central government have provided some relief.

After a fall in exports for the last two consecutive years, apparel exports were up 4 per cent in the last four months of this fiscal. Read the rest of this entry »

Robust textile exports help India reduce trade deficit with China

Source: The Hindu Business Line, Apr 14, 2019

Mumbai: Robust export of cotton textiles to China has helped India reduce its trade deficit with that country. The recent government move to reimburse all State and Central levies on textile exports boosted shipments to major consuming countries.

Cotton textile exports to China increased 69 per cent between April 2018 and and February 2019 to $1.55 billion, against $920 million in the previous year period.

KV Srinivasan, Chairman, Cotton Textile Export Promotion Council, said exports can increase further if the Centre addresses the tariff disadvantage of 3.5-10 per cent that the Indian industry suffers vis-a-vis textile exporters in Vietnam, Pakistan and Indonesia. Read the rest of this entry »

Indian cotton fabric, yarn exports fall due to high duties: Study

Source: The Economic Times, Feb 10, 2019

New Delhi: India is lagging in cotton exports to major markets due to a duty disadvantage vis-a-vis Bangladesh, Vietnam and Pakistan, a Confederation of Indian Textile Industry (CITI) study found.

Indian export of cotton yarn to the likes of the European Union (EU) and China slumped 25% in the past five years, while fabric export fell 7%. Read the rest of this entry »

India’s textile and apparel exports jump by 14% in November

Source: Business Standard, Dec 19, 2018

Mumbai: After a staggering 38 per cent jump in October, India’s textile and apparel exports growth moderated to 14 per cent in November due to a sharp volatility in the rupee against the dollar.

Data compiled by the Union Ministry of Textiles showed India’s textile and apparel exports at Rs 189.65 billion for the month of November 2018 compared to Rs 167.07 billion in the corresponding month last year. For the period between April and November, however, total textile and apparel exports witnessed a growth of 7 per cent to Rs 1600.10 billion for 2018 versus Rs 1492.54 billion in the same period last year.

In dollar term, however, India’s textiles and apparel exports recorded a mere 2 per cent jump to $2.64 billion for November 2018 versus 2.57 billion for the same month last year. For the period between April and November, however, total textile and apparel exports remained flat at $23.18 billion. Read the rest of this entry »

Duty drawback rate increase to boost textile exports from India

Source: Business Standard, Dec 12, 2018

Mumbai: The government’s decision to raise the duty drawback rates will boost textile and apparel exports, experts said.

Despite several incentives offered by the government to boost textile and apparel exports, their shipment from India stagnated between $32 billion and $37 billion for over seven years.

For the financial year 2017-18, India witnessed textile and apparel exports to the tune of $36.05 billion as against the target of $45 billion. Now, the government has set yet another challenging target of $82 billion by 2021.

Read the rest of this entry »

Suresh Prabhu urges textiles industry to prepare road map for boosting exports

Source: IBEF.org, Nov 29, 2018

New Delhi: Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu, urged the textiles industry to prepare a road map in order to tap into the export market. Addressing a Global Conclave of Confederation of IndianTextile Industry in New Delhi today, Suresh Prabhu said that Government is willingto extend all possible support to the textiles industry.

Suresh Prabhu said that the contribution from textiles and apparel can be increased by scaling up and increasing investments into the industry along with cost optimization and vertical integration.Investing in new and more efficient technologies and processes will lead to more superior products.

The Minister said that the Indian textile industry should modernize their approach as well as the technologies and gain competitive advantage over neighboring countries and diversify product range across the value chain.The Minister said that the Commerce Ministry is making all efforts to onboard all line ministries for greater synergy in order to promote exports. Read the rest of this entry »