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Related Keywords: Agriculture Infrastructure Incentive Scrip, focus market scheme, Focus Product Scheme, foreign trade policy, Indian textile industry, Market Linked Focus Product Scheme, MEIS, Merchandise Exports from India Scheme, textile exports, VKGUY

The NDA government’s new Foreign Trade Policy (FTP) 2015-20 was unveiled here on 1 April, focusing on supporting both the manufacturing and services sectors, with a special emphasis on improving the ‘ease of doing business’. The five-year FTP 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 Narendra Modi.

Related Keywords: AEPC, Canada and China, Europe, European Union, Focus Product Scheme, Indian textile industry, major importing countries, tariff barriers, Texprocil

The Indian textile industry is facing tariff barriers imposed by major importing countries such as from the European Union, Canada and China. While the competing countries such as Pakistan, Bangladesh, Cambodia and Vietnam have negligible duty. Hence to overcome these tariff barriers the Government has been urged to increase the export incentives under the Focus Product Scheme to seven percent from two percent.

Related Keywords: add USD 4-5 billion, china reducing export, Focus Product Scheme, global export share, home textile, huge scope, Indian Textile, Minister of State for Textile, S K Gangwar, Texprocil

Indian textile has a global exports share of just 3.5 percent that leaves huge scope for increasing it and the potential to export an additional USD 4-5 billion as China, which enjoys 35 per cent share, is slowly reducing its exports.

If the government eases tariff burden and raise overall concession under the Focus Product Scheme to 7 percent, the textile industry can easily add another USD 4-5 billion. The country's textile exports stood at USD 40 billion last year, stated Texprocil Chairman Manikam Ramaswami.