NEW DELHI: India’s cotton fabrics export is likely to get a 10-15 per cent boost in the current financial year after the Government announced that the inclusion of a dozen African countries under the Merchandise Exports from India Scheme (MEIS), according to The Cotton Textiles Export Promotion Council (TEXPROCIL).
In the latest notification issued on October 29, the Directorate General of Foreign Trade (DGFT) included 12 African countries under MEIS for exports of cotton fabrics (woven and knitted) and made-ups. The new MEIS list of the dozen African countries offer a huge potential for exports of cotton fabrics from India and make the Indian products competitive against those of Bangladesh, Pakistan and China.
“This is a positive step taken by the government and has come as a huge relief to the exporters of cotton textiles,” Texprocil chairman R K Dalmia said in a statement.
Exports of value-added and labour-intensive products such as cotton dyed and printed fabrics and made-ups to African countries will receive a huge boost. “Exports of cotton fabrics would get a further fillip of 10-15 per cent and India would also link up with the global value chains by offering products at competitive prices,” said Dalmia.
Cotton textiles exports declined 2.16 per cent to $4.24 billion between April and August 2015, compared to the same period last year. The government’s target of $13.67 billion for cotton textiles exports for 2015-16 looks ambitious.
The inclusion of various categories of knitted fabrics under the MEIS will also encourage exports of knitted fabrics including knitted fabrics with lycra, Dalmia said.
The Texprocil Chairman said. if these measures are also followed up by the much awaited announcement of the Interest Rate Subvention Scheme and an increase in the drawback rates, exporters will be able to overcome the difficulties which they are currently passing through due to slowdown in the world market.
