Industry cheers 2 percent interest subvention on RMG

The basket of schemes announced in the Annual Supplement

2013-14 to the Foreign Trade Policy (2009-14) has been widely welcomed by the textile industry associations. They see the various measures as steps towards improving the domestic textile and clothing sector. Be it the extension of 2 percent interest subvention to readymade garments or inclusion of Norway under the Focus Market Scheme or reduction in export obligation under the Export Promotion Capital Goods scheme, the announcements seems to have touched the right chord as far as the textile industry is concerned.

Expressing their gratitude, the Tirupur Exporters’ Association has said that the requirements of the garment sector have been fully addressed in the policy. The extension of Market Linked Focus Product Scheme for exports to the US and the EU would help increase domestic industry’s competitiveness and help sustain in these markets; extension of 2 percent interest subvention to readymade garments up to March 2014, will be a relief to the knitwear exporting community as bank rates have risen up to 11.5-13.5 percent.

The Southern India Mills Association chairman, S Dinakaran has also thanked the ministry for giving due weightage to the industry. “India could sustain positive growth particularly in cotton yarn, cotton fabric and cotton made-ups. It has made substantial progress with respect to cotton yarn exports during 2012-13 increasing exports almost by 29 percent when compared to the previous year,” said Dinakaran.