Mar 7, 2022
Commerce Ministry explores incentives for textile sector
Mar 7, 2022
The Ministry of Commerce and Industry is liaising with the Ministry of Textiles and is considering offering new incentives to Indian textile exporters to enable them to expand their businesses in Europe and other markets.
Officials from the Ministry of Commerce and Ministry of Textiles have met to finalise details of the proposed trade incentives. As textiles represent a key area of Indian exports, the government is looking for ways to increase exports as part of its wider push towards domestic production.
“These incentives, if and when they come, will go a long way in helping Indian textile firms enter the European markets, which currently slap high levy on Indian exports,” said an anonymous parliamentarian close to the discussion, the Hindustan Times reported. “The proposed incentives will be aimed to offset these levies.”
As Europe is India’s third largest export destination, more favourable trade agreements would have a significant effect on the Indian textile export market. The European Union has proposed a carbon tax on goods which would affect Indian textile exporters to the region so the new incentive rate would be designed to offset this and several other levies.
“We were also informed that the government is in advanced stages of talks with the UK and Australia,” said the source cited above. “The officials told us that the centre has a target of reaching $500 billion in exports by the end of the next financial year.”
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