FTAs with EU, Australia, UK, Canada, Israel, and other countries

Mar 30:Minister of state for Textiles Smt. Darshana Jardosh in a written reply in the Lok Sabha today informed that India and UAE have recently signed a Free Trade Agreement which is likely to boost exports of Indian textile and apparel. India is currently in the process of negotiating FTAs with the EU, Australia, UK, Canada, Israel, and other countries/regions.

India is facing tariff disadvantage in some of the markets such as the EU, UK, etc. as compared to neighboring competing nations like Bangladesh, Cambodia, Sri Lanka, etc. The Government, under its Market Access Initiative (MAI) scheme, provides financial support to various Export Promotion Councils (EPCs) and Trade Bodies engaged in the promotion of textiles and garments exports, for organizing and participating in trade fairs, exhibitions, buyer-seller meets, etc. Further, in the times of the COVID-19 pandemic, virtual exhibitions were also organized by EPCs as an alternative mode of marketing, in order to tap opportunities in the global markets.

In order to make textiles products cost-competitive and adopt the principle of zero-rated export, the government has extended the continuation of Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) till 31st March 2024. The other textiles products (excluding Chapters 61, 62, and 63) which are not covered under the RoSCTL are covered under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products.

The Amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016 as a one-time capital subsidy for eligible benchmark machinery. Segments which have got higher employment and export potential such as garments and technical textiles are eligible for capital subsidy. In order to supplement its efforts in the textile industry by creating jobs and also to address the skilled manpower needs of the industry, the Ministry of Textiles is implementing the Samarth- Scheme for Capacity Building in the Textiles Sector (SCBTS) for the entire value chain of textiles except Spinning and Weaving in the organized sector. Ministry is implementing Textile Cluster Development Scheme (TCDS) from 2021-22 to 2025-26 with a view to creating an integrated workspace and linkages-based ecosystem for existing as well as potential textile units to make them operationally and financially viable with a view to bringing benefits of critical mass for customization of interventions, economies of scale in operation, competitiveness in manufacturing, cost-efficient, better access to technology and information, etc. Further, to promote the production of MMF Apparel, MMF Fabrics, and Products of Technical Textiles in the country, the Production Linked Incentive (PLI) Scheme for Textiles has been launched. The government has also approved the setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites to develop world-class infrastructure including plug and play facility.

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