Government's Foreign Trade Policy Must Make Indian Textile and Apparel Exports Attractive

摘要

Government of India's annual supplement to the Foreign Trade Policy (FTP) 2009-2014 must have policies to make India's textile and apparel exports attractive. During the first 10 months of the current financial year till January, 2013, merchandise exports declined 4.9 per cent year-on-year to $ 240 billion from $ 252 billion. It started declining since May, 2012; in January though the fall was less than one per cent. The Government, while unveiling its much-awaited policy must focus this time on sectors constituting part of the bulk of India's merchandise shipments such as textiles, engineering, gems and jewellery and leather. In his Budget speech, P. Chidambaram, Finance Minister has stated "I look forward to the changes that will be made to the FTP. I assure my support to measures that will taken to boost exports". The Government must also give a major thrust to units inside Special Economic Zone (SEZ). These already have 100 per cent income tax exemption for the last five years of operations. Further incentives must be given to make exports from SEZ attractive, with a view to competing with our neighbouring countries.