ALSO READGovt announces measures to boost garment exports 'GST to boost exports competitiveness despite initial hiccups' Centre commissions revised GST rates on export of readymade garments Government announces measures to boost exports of textiles and apparel sector Leather industry seeks govt's intervention on GST issues
The textile and agri industry today said the government's mid-term review of Foreign Trade Policy (FTP) would help boost exports in labour-intensive sectors like textiles and agriculture.
"The mid-term review of FTP is progressive, growth-oriented and I am glad the government has recognized the urgent need to address the challenges being faced by the exporters on account of the GST roll-out by focusing on reducing procedural burden," the Cotton Textiles Export Promotion Council (Texprocil) chairman Ujwal Lahoti said.
The revised FTP has increased MEIS rates across the board by two per cent for labour intensive sectors. Earlier the MEIS rates for garments and made-ups were increased from two per cent to four per cent. The enhanced MEIS 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.
He also said the increase in the validity of duty credit scrips issued under the MEIS from 18 months to 24 months will increase the utility of such scrips.
With regard to export strategy, the Texprocil chairman said it is reassuring that the revised FTP identifies markets in Africa and Latin America to be its new focus areas as part of the government's goal of exploring new markets.
The textiles sector especially technical textiles will benefit immensely from this scheme. Also, it allows domestic procurements which will promote "Make in India," initiative, Lahoti added.
Lahoti pointed out that cotton yarn continue to be denied any benefit under the FTP.
Ruchi Soya Industries managing director and CEO Dinesh Shahra said, "The increase of Rs 1,354 crore in the incentives for agriculture and related products will given an additional boost to agri industries, which will in turn benefit all stakeholders including the farmers."
It is heartening to see agro-processing as a focus area in the government's drive to increase exports to new and un-tapped markets, and this is a big positive for the industry. We also look forward to the new agricultural exports policy to give a long-term direction to the industry through a stable policy regime, Shahra said.
Meanwhile, engineering exporters' body EEPC India said that the RBI needs to help exporters by reducing the cost of borrowing.
"The RBI could have joined the government in helping the exporters by reducing the cost of borrowing," EEPC India chairman T S Bhasin said.
The RBI policy review has taken place a day after the commerce ministry has come out with a pragmatic review of the Foreign Trade Policy. As exports are picking up due to demand pick up in some of the key markets, the domestic exporters must be strengthened to face the increasing competition from countries like China where the cost of capital is significantly lower than India, Bhasin said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)