CITI WELCOMES ENHANCEMENT OF EXPORT INCENTIVES FOR GARMENTS AND MADE UPS SECTOR

 

Shri Sanjay K. Jain, Chairman, CITI welcomes the decision of enhancement of export incentives for garment and made ups sector under Merchandise Export from India Scheme (MEIS) and Rebate of State Levies (RoSL) to check the declining export of textile products. The Ministry of Commerce has enhanced the export incentives to 4% from 2% for the garment and made up sectors under MEIS. Similarly, under RoSL the government has increased the refund of state levies on the average of 0.5%.

(Rate in %)

RoSL Rate Pre & Post GST

Description

Before Revision

After Revision (1st Oct 2017)

 

Cotton

Blend

MMF

Cotton

Blend

MMF

T-Shirts

1.22

0.75

0.75

1.70

1.16

1.16

Night Dresses

0.97

0.86

0.75

1.45

1.30

1.16

Briefs

0.97

0.86

0.75

1.60

1.38

1.16

 

Shri Jain stated that he would like to thank the Hon’ble Minister of Commerce & Industry, Shri Suresh Prabhu and  the Hon'ble Textile & Broadcasting Minister, Smt. Smriti Zubin Irani for addressing the issue of declining exports of textile goods. He further stated that the exports of readymade garments had declined by 39% to $829 million in October 2017. He observed that the move will boost the garment exporters to accept bigger orders from the global buyers which they were unable to accept due to competitiveness reducing in wake of reduction in drawback & ROSL rates post GST. Textiles is the largest employer in the country after agriculture and has immense possibility to provide additional jobs in the coming years. It is important to realise that Indian export especially garments is facing severe competition from neighboring countries like Bangladesh, Pakistan, Vietnam and Sri Lanka as they enjoy duty free access in European markets.

 

Shri Jain stated that CITI had highlighted the issue of declining exports of textile goods in its recent representations to the Ministry of Textiles, Ministry of Commerce and Ministry of Finance and requested the Government to take immediate steps to support the textile sector by enhancing export incentives under MEIS, Drawback and RoSL. He further pointed out that textile industry issues are not yet fully over and it needs further support from the government to equally support the entire value chain (no relief provided to yarn & fabric sector) for the holistic growth of the textile industry. Unfortunately yarn and fabric which have also seen steep fall in exports, have not been given any relief. Even in garments and madeups, the overall incentives and refund of duties on exports is still about 3% less than pre GST levels.

 

Indian cotton yarn sector is badly impacted by the lower demands from the domestic sector as well as international markets and fabric sector, which is also the weakest link of the value chain is also marred by the high incidence of centre and state levies. Shri Jain observed that until and unless MEIS and IES are not extended to the cotton yarn sector and RoSL benefits are not extended to the fabric sector India’s competitiveness in the international markets will remain less in comparison to Bangladesh, Pakistan, Vietnam, China and Sri Lanka. It is pertinent to note that cotton yarn exports this year till August is 29% lower than last year.

 

 

Shri Sanjay K. Jain felt that the government will immediately address the unresolved issues of the textile sector to make the sector globally competitive. The sensitiveness of the Government to the industry problems is very encouraging and gives the industry confidence to grow strongly by enhancing capacities and making inroads in various international markets.

 

Read 212 times
No result...