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.

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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 »

Textile & apparel exports jump 33% in October on higher overseas demand

Source: Business Standard, Nov 17, 2018

Mumbai: Textiles and apparel exports jumped by a staggering 33 per cent in October because of higher overseas demand. Led by the US, the largest importer of India’s clothing, the boom has been triggered by recovery in the global economy. Depreciating rupee helped boost realisations of textile, apparel exporters.

According to data compiled by the Ministry of Commerce, the country’s textile and apparel exports stood at Rs 1,986 billion for October 2018 as against Rs 1,489 billion in the corresponding month last year. While overall textiles exports posted a jump of 28 per cent, shipment of apparel from the country shot up by 54 per cent in the month under consideration. Read the rest of this entry »

Textiles, clothing exports jump 11% in July on govt policies, falling rupee

download (1).jpgSource: Business Standard, Aug 25, 2018

After a staggering 17 per cent decline in the April–June quarter, India’s textiles and clothing exports revived to witness a jump of 11 per cent in July due to favourable government policies and rupee depreciation.

Data compiled by the DGCIS under the Union Ministry of Commerce showed total textiles and apparel exports at Rs 196.36 billion ($ 2.86 billion) for July 2018 compared to Rs 176.92 billion ($2.74 billion) for the corresponding month last year. Total textiles exports witnessed a jump of 15 per cent to Rs 108.79 billion ($1.58 billion) for July 2018 versus Rs 94.29 billion ($ 1.46 billion) in the comparable month of previous year. Moving in tandem, India’s apparel exports recorded a jump of 6 per cent to Rs 87.57 billion ($1.27 billion) for July 2018 as against Rs 82.63 billion ($1.28 billion) for the same month last year.

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Special Package to Boost Export of Textiles

downloadSource: IBEF.org, Aug 03, 2018

New Delhi: India has the potential to become one stop sourcing destination for brands and retailers from ASEAN. There are opportunities for textile manufacturers from ASEAN to invest here and cater to domestic market as well as exports because of competitive advantages available in India including availability of raw material, trained man-power and presence of the entire textile value chain. Further, 100% FDI is allowed in the textile sector under automatic route.

To increase exports of textile and apparel, Government has announced a Special Package for garments and made-ups sectors. The package offers labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS), enhanced duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act. Further, the rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel and made-ups from 1st November 2017.

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Incentive package for garments helped increase exports

download (6).jpgSource: The Hindu Business Line, Jan 29, 2018

New Delhi: Export incentive packages announced by the government to support vulnerable sectors do have a positive impact on performance of some categories, the Economic Survey has highlighted.

A case study of the ₹6,000-crore export package announced for the apparel sector by the government in June 2016 published in the Survey shows that the growth in clothing exports (manmade fibre) compared to other labour-intensive and manufacturing goods, which did not receive the incentives, was much higher.

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Govt clears Rs 1,300-cr skill dev scheme for textile sector

Source: Business Standard, Dec 21, 2017

New Delhi: The Union Cabinet today approved a new skill development scheme having an outlay of Rs 1,300 crore with an aim to create jobs in the organised textile and related sectors.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here. Read the rest of this entry »