In 2017-18, India’s overall merchandise exports stood at USD 303.38 billion and textile and apparel exports including handicrafts valued at USD 39.22 billion comprising 13% of overall exports of India.
To promote Government participation in production and exports of textile and apparel products, Government has announced Special Package for garments and made-ups sectors. The package offers labour law reforms, additional incentives under 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, 5% to 7% for made-ups, handloom and handicrafts w.e.f. 1st November 2017. Products such as fibre, yarn and fabric in the textile value chain are being strengthened and made competitive through various schemes, inter alia, Powertex for fabric segment, Amended Technology Upgradation Fund Scheme (ATUFS) for all segments except spinning, Scheme for Integrated Textile Parks (SITP) for all segments, etc.
IGST has been exempted on import under Advance Authorisation and Export Promotion Capital Goods (EPCG) Scheme. Government has also enhanced interest equalization rate for pre and post shipment credit for the textile sector from 3% to 5% w.e.f. 02.11.2018 and provides assistance to exporters under Market Access Initiative (MAI) Scheme.
This information was given by the Minister of State of Textiles, Ajay Tamta, in the Rajya Sabha.
Source :- Dailyshippingtimes.com