SIMA urges government to relook on FTA to help industry regain its global competitiveness

The Foreign Trade Policy (FTP) 2015-2020 which was undraped by Minister of State for Commerce & Industry Nirmala Sitharaman on 2nd April ,2015 provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in keeping with the Make in India vision of Prime Minister.

The local chapter of Indian Chamber of Commerce and Industry, welcomed the policy saying, it has bold initiatives and aims to achieve a compound annual growth rate of 11.5 per cent so as to increase the Merchandise and Services Exports.

But the Chairman of Southern India Mills’ Association (SIMA) T Rajkumar feels that the FTP has failed to address specific issues on textile sector.

According to him, the present banking norms, several thousands of small and medium textile units across the country, particularly South India would soon become NPAs in the absence of improvement in exports.

The cotton textile industry, particularly spinning sector, has been reeling under a severe recession during 2014-2015 due to the drop in exports by 30-40 million kg of yarn per month.

It was essential to make zero access entry for yarn, fabrics and garments in China to grab the emerging market opportunities which otherwise would be grabbed by countries like Pakistan, Vietnam, Cambodia and Indonesia.

He thus appealed to Prime Minister Narendra Modi and Commerce Minister Nirmala Sitharaman to have a re-look on the Foreign Trade Policy and consider the pleas made by the industry to regain its global competitiveness.

He has requested the Government to recognise the textile industry’s potential to foster export growth and job creations for millions of rural population and announce suitable incentives under MES for yarns, fabrics, garments and made-ups as stated in the objective of FTP.

Recent Posts

VIP Clothing expands portfolio with premium products

VIP Clothing has entered a new market segment with the launch of branded handkerchiefs while also expanding its presence within…

3 hours ago

Cotecna launches advanced testing laboratory in Tirupur

Cotecna has officially opened its new Softlines Testing Laboratory in Tirupur. The inauguration was led by Amit Chopra, along with…

3 hours ago

Loop Industries expands recycling technology to Europe and India

Loop Industries has raised €10 mn through a convertible preferred security agreement with Reed Societe Generale Group, an entity under…

1 day ago

OJAS and Maharishi collaborate on capsule collection

OJAS has partnered with Maharishi for a capsule collection in military-inspired aesthetics featuring Maharishi’s Original Snopants, sweatshirt, and a tote…

1 day ago

Red Run expands into menswear with Drop 1 collection

Red Run has announced its foray into menswear with menswear collection, titled ‘Drop 1,’ featuring 10 essential pieces designed for…

2 days ago

INEOS Styrolution launches recycled polystyrene yoghurt cups

INEOS Styrolution, a global leader in styrenics, has successfully completed its first project involving mechanically recycled polystyrene in yoghurt cups.

2 days ago