Confederation of Indian Textile Industry (CITI) and textile industry of India seem to be really glad with initiative that the Government of India has taken to extend the Interest Subvention Scheme to the value-added textile segments of fabric, apparel and made-ups. Naishadh Parikh, Chairman, Confederation of Indian Textile Industry believes that the initiative will back the efforts of textile exporters of India in retaining their market share when major markets are experiencing negative growth. “Interest Subvention Scheme coupled with recently revised MEIS should help reversing the trend of falling exports across Textile value Chain,” said Naishadh Parikh.
Also Read – Interest Equalisation Scheme on Pre- & Post-Shipment Rupee Export Credit announced
CCEA (The Cabinet Committee on Economic Affairs) yesterday approved 3% subvention scheme for exporters for Pre- & Post-shipment credit for a period of 5 years. The Interest Subvention Scheme would bridle the slowing down trends of India’s textile & clothing exports and will boost investment in the textile export sector of India. The new AIR duty drawback, MEIS and interest equalisation scheme are steps by the Union Government of India that would surely support the labour-intensive industries like textiles, enhance economic growth and promote large scale job creation.
Also Read – Government of India extends export benefit for more countries
Interest Equalisation Scheme will cover the list of 416 tariff lines including sectors like readymade garments and made ups (Ch 61-63, All lines, No. of HS4 lines 42), fabric of all types (all lines, No. of HS4 lines 33), handicraft (all lines, No. of HS4 lines 37), raw jute, yarn (all lines No. of HS4 lines 2). The scheme will be funded from the funds available with Department of Commerce under non-plan side during 2015-16 and the restructured scheme would be funded from plan side from 2016-17 onwards.
