Programmes such as the Export Promotion Capital Goods Scheme offered by India for exporters, that have been challenged by the U.S. at the World Trade Organisation (WTO), are not subsidies, according to a senior Union Textile Ministry official.
These are given mainly to equalise the costs incurred by the industry with the international costs, Textile Commissioner Kavita Gupta told The Hindu here on Friday. “We are not giving subsidies. Industries face high logistics costs and State levies and these are not reimbursed. Schemes such as the Merchandise Exports From India are to offset these costs. The Export Promotion Capital Goods Scheme is for adoption of better technology.” The total textile exports this financial year was expected to be about $40 billion. This was almost the same as last year. There were several reasons that are affecting exports such as contraction of international demand, she said.
“There is tremendous potential for exports. Export of value-added products such as garments, made- ups and technical textiles should increase to pull up the downstream segments of textiles. Investors should invest in these sectors,” Ms. Gupta earlier told journalists.
With the special packages that were announced by the Union Government for made-ups and garments, five lakh to seven lakh new jobs (direct and indirect) were created.
Apart from investments in spinning and ginning segments, investments of more than ₹30,000 crore happened in the last three to four years across the value chain under the Technology Upgradation Fund Scheme. On increasing imports, she said the ministry had been deliberating on these issues to see how best it could be resolved.
“I am sure some solution is going to emerge soon,” she said. Regarding Rebate of State Levies, she said the ministry had got about ₹900 crore and it would be released soon. The ministry is also pursuing with the government on the additional funds required for the scheme. The office of the Textile Commissioner has given proposals related to Technology Mission on Cotton and Technology Mission on Technical Textiles to the Textile Ministry.