Government of India - Ministry of Textiles
28-November-2019 15:06 IST
Textile industry in India is subject to provisions of the WTO Agreement on Subsidies and Countervailing Measures (ASCM) which stipulate that if a developing country member’s exports of a product has reached a share of at least 3.25% of world trade of that product for two consecutive calendar years, it will be considered as export competitive in that product. Further, export subsidies on such products shall be gradually phased out over a period of eight years.
As per this provision, India is obligated to phase out subsidies which are export contingent.
To boost exports and enhance competitiveness, of the textiles sector, Government had announced a Special Package for garments and made-ups sectors. The package offers Rebate of State Levies (RoSL), labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS) and relaxation of Section 80JJAA of Income Tax Act.
The RoSL scheme has since been replaced by the scheme for Rebate of State and Central Taxes and Levies from 7th March 2019. Assistance is also provided to exporters under Market Access Initiative (MAI) Scheme.
Government has enhanced interest equalization rate for pre and post shipment credit for exports done by MSMEs of textile sector from 3% to 5% from2.11.2018. Benefits of Interest Equalization Scheme has been extended to merchant exporters from 2.01.2019 which was earlier limited to only manufacturer exporters.
This information was given by the Union Minister of Textiles, Smriti Zubin Irani, in written reply in the Rajya Sabha today. *** MM/ SB (Source: PIB Release)