The Directorate General of Foreign Trade (DGFT) has penned a letter to the Department of Revenue for not to provide incentives to textile sector in the upcoming Foreign Trade Policy (FTP), as India has reached the export competitiveness in the segment. According to Article 27.6 of Agreement on Subsidies and Countervailing Measures, export competitiveness exists if a developing country’s exports have reached a share of at least 3.25 per cent in world trade of that product for two successive calendar years. Conversely, the industry feels that incentives should not be withdrawn before 2018, as the deadline ends in that year only.
