Requisition for Continuance of Schemes under New Foreign Trade Policy
President of Tirupur Exporters’ Association, Mr. A. Sakthivel in a letter to Mrs. Nirmala Sitharaman, union ministers of state for commerce & industry has said that the textile ministry has fixed an export target of US $ 45 Billion for textile products for the year 2014 – 15 and the garment sector has been taking full efforts to achieve its export share of contribution in the export target of textiles.
“We wish to emphasis the point that the reaching of export target could be possible only with the continuance of schemes under Foreign Trade Policy and 3% Interest Subvention on Rupee Export Packing Credit available for garment sector, retrospective effect from April one, 2014,” Mr. Saktivel said in his letter, copy of which was also sent to union finance minister.
“We are confident that the announcement of expected positive measures by the government would certainly help Tirupur knitwear export garment sector to reach the target of doubling exports in next three years, from Rs.18,000 crore in 2013 – 14 to Rs.36,000 crore in 2016-17, “ he said.
Mr. Saktivel said knitwear exports have sustained in the global market amidst of challenging economic situation in Euro zone and slower recovery in US market mainly because of proactive positive measures like extension of Market Linked Focus Product Scheme (MLPFS) for chapter 61 and 62, availability of Interest subvention of 3% for Packing Credit to garment sector, Incremental Export Incentive Scheme, reduction of transaction cost, additional benefit to the new markets announced by the commerce ministry with the support of textile ministry.
He said that the level playing field is a paramount importance for the knitwear exports to sustain and increase the share in the global market since “our competing countries like Bangladesh, Vietnam, Cambodia apart from China are providing a lot of exports supporting measures, which have helped them to leap over us in the global market.”
Mr. Sakthivel said the new Foreign Trade Policy for 2014 -19 to be unveiled shortly must carry the following points mainly to increase competitiveness in the global market.
The benefits for Market Linked Focus Scheme, which is the only scheme valid in the year 2014-15, till further orders, may be announced for the whole 12th Five Year Plan. Under this scheme exports to EU & USA are given 2% scrip and these markets constitutes 85% of Tirupur share.
The entitlement under Focus Market Scheme, which was 3% to 124 countries and 4% to 49 countries may be increased to 5% and the scheme may be announced for the entire period of 2014-19.
Mr. Sakthivel pointed out that the knitwear exports to European union is more than 50% and early signing of Free trade agreement (FTA) with European union will be helpful for “us to increase our market share in European union and it is to be noted that as of now, Bangladesh, being least developed country, is enjoying the duty free status and the total exports from the Bangladesh has reached about US $ 26 billion against our exports of US $15 billion.”