Finally, a positive step from the Government’s side to support exports has given reason for some cheer to the community. In a recent move, the Government of India has extended the 2 per cent export benefit under the ‘Merchandise Export from India Scheme’ (MEIS) allowing the export of fabrics and man-made fibre spun yarns to leading markets such as African countries, Middle-East countries, Sri Lanka, and Bangladesh. The duty benefit amendment as part of the allocation have been increased from Rs. 18,000 crore to Rs. 21,000 crore for MEIS. Textile and apparel sector has emerged as one of the major beneficiaries of the latest amendments in MEIS. Earlier, the benefit was confined only to countries in Group ‘A’ and Japan in Group ‘B’ and Bangladesh and Sri Lanka in Group ‘C’ for fabrics. In the case of man-made fibre spun yarns, the benefit was earlier extended only to countries in Group ‘A’ and Japan in Group ‘B’. Now the benefit has been extended to all countries in Group ‘A’, ‘B’ and ‘C’ for both fabrics and man-made fibre spun yarn. In the case of madeups and apparels, the benefit was extended to all countries in Group ‘A’ and only Japan in Group ‘B’, but now the benefit has been extended by Government of India to all countries in Group ‘A’ and Group ‘B’.
Santosh Kumar Gangwar, Union Minister of State for Textiles (I/C) expressed gratitude to Nirmala Sitharaman, Minister for Commerce and Industry, for this step. Chairman of the Southern India Mills’ Association (SIMA), M. Senthilkumar reacted to the amendment saying, “Cotton yarn also could have been included as the highly capital and labourintensive spinning sector is comparatively under more stress when compared to other segments. The relief given to the man-made fibre spun yarn might slightly increase the exports and help the spinning sector to a certain extent.”
