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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

Industry bodies studying export subsidy schemes

Move follows U.S. disputing some of the schemes at WTO
Textile and clothing export promotion councils and associations related to exports have started taking up studies on the export promotion schemes implemented by the government. This comes in the wake of the U.S. challenging some of the Indian export subsidy schemes at the World Trade Organisation.
“We have appointed an agency to give recommendations. We expect a report in three to four weeks. As of now, there is no concrete opinion on any of the schemes,” said A. Sakthivel, vice-chairman of Apparel Export Promotion Council.
Supportive schemes
The focus will be on strengthening the whole sector. The apparel sector is at an important milestone and the council is looking at schemes that will support the sector for another 10 to 20 years, said Chandrima Chatterjee, advisor — research and policy advocacy, of the council.
According to Siddhartha Rajagopal, executive director of Cotton Textiles Export Promotion Council, the export schemes that are being studied are for all sectors and not just textiles. So, various organisations and government departments are examining these schemes. “They want inputs from the industry. If alternative schemes are to be there, those should be rolled out this year. The government is reviewing the existing duty drawback and Rebate of State Levies too,” Mr. Rajagopal said. We need to see how fast the schemes can be developed and operationalised at the industry level. Each industry has its own requirements too,” he added.