You are here: Home » Economy & Policy » News
Business Standard

Govt increases MEIS by 2%, manmade-fibre industry disappointed

Earlier, the MEIS rates for garments and made-ups had been increased from 2% to 4%

Dilip Kumar Jha  |  Mumbai 

Textile, clothing, women working, working women

textile exporters have welcomed the government’s decision to raise the (MEIS) by 2 per cent on labour intensive sectors. While announcing the mid-term review of the Foreign Trade Policy 2015-20, the government on Tuesday increased by 2 per cent on all exportable goods including textile products. Ujwal Lahoti, chairman of The Textiles Export Promotion Council (Texprocil) said, “The Mid Term Review of Foreign Trade is progressive, growth oriented. The government has recognised the urgent need to address the challenges being faced by the exporters on account of the roll out of the goods and services tax (GST) regime by focusing on reducing procedural burden”. Earlier the rates for garments and made ups were increased from 2 per cent to 4 per cent. With current increase, the has gone upto 6 per cent. The government also raised on shopping bags to 5 per cent from the level of 3 per cent earlier. However, textile exporters urged the government to include yarn under and extend 3 per cent Interest Equalisation Scheme to merchant exporters.

Exporters have also urged the government to cover fabrics under rebate of state levies (RoSL) and increase rates for fabrics to allow domestic procurements against Export Promotion (EPCG) Authorizations and Advance Authorisations without payment of for export production. “The enhanced rates will provide the much needed relief to exporters and will certainly have a positive impact on the overall exports especially of textile products,” Lahoti said and added, “The increase in the validity of duty credit scrips issued under the from 18 months to 24 months will increase the utility of such scrips.” Meanwhile, the policy has disappointed segment. Srinarain Aggarwal, Chairman of The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) said that although the mid-term review had addressed a host of the issues from to ‘Ease of Trading’ across borders, it has grossly overlooked the segment of the country that has been reeling under with asymmetrical input taxes and inverted duty structure, besides facing fierce competition in overseas markets. SRTEPC had sent various representations to the Ministry of Textiles and Ministry of Commerce and Industry, with request to increase rates on all the fabrics, made-ups and yarns of fibres. Recently, it had sent a list of 167 MMF items in these categories to the Ministry of Commerce and Industry requesting to increase the rates. However, the mid-term policy review covers only seven fabrics and four made-up items which is a total disappointment for the textile segment of the country. According to the review statement to increase 2 per cent rates across the board for labour intensive MSME sectors leading to additional annual incentive of Rs 4,567 crore, the Council expects that the Government may shortly come out with another list of items with revised rates, Aggarwal said.

First Published: Tue, December 12 2017. 20:26 IST
RECOMMENDED FOR YOU