The Textiles Ministry has sought the inclusion of man-made fibre textiles under the Special Focus Initiative to promote exports from the sector. The Textiles Ministry has stated that man-made fibre textiles has huge export potential, with the current global textiles trade (exports) estimated at $300 billion, in which the share of man-made fibre textiles is about 60 per cent ($180 billion). However, India’s share in the global trade of man-made fibre textiles is a meagre 3 per cent.
“Exports of man-made fibre textiles account for 17 per cent of Indian textiles exports . This sector, being labour-intensive, could provide employment on a large scale, especially near the rural areas. Therefore, if man-made fibre textiles is included under the Special Focus Initiative, it will provide the necessary encouragement to the exporters from this sector,” it said in a note to the Finance and Commerce Ministries.
Focus Market Scheme
The Textiles Ministry has also sought expansion of the Focus Market Scheme to offset high freight cost and other disadvantages such as payment risks and high bank charges. “In countries where anti-dumping duties have been imposed, such as Turkey and Brazil, the Focus Market Scheme’s benefits could be given by the way of including these countries under the scheme,” it added.
The inclusion of the proposed countries under the Focus Market Scheme will help exporters enhance the competitiveness of their products, according to the Ministry.
The Ministry also said that the Synthetic & Rayon Textiles Export Promotion Council an apex body of the manufacturers/exporters of man-made fibre, welcomed the decision to grant an incentive of 2 per cent incremental exports, made during the period January-March 2013 over the same period last fiscal year, to U.S., EU and countries in Asia.