The neighbouring countries Bangladesh, Pakistan and Sri Lanka taking advantage of unilateral tariff preference scheme granted to developing countries are giving tough competition to India, who from this year graduated out of the GSP benefit provided by Europe. While India has to pay a customs duty of 8 per cent, these countries enjoy zero duty access for textiles products into the Europe. The Government has undertaken research and studies on various facets of textile industry including estimating the domestic household market size of textiles, export competitiveness analysis of the Indian textiles in different export destinations of the world.
To improve textile export and competitiveness of Indian textile industry and in order to explore new markets for textile exports, the steps taken by Government include enhancing the coverage of Market Linked Focus Product Scheme for textile products to increase India’s share in various countries and the Duty Drawback Scheme. The Export Promotion Capital Goods (EPCG) scheme is one of the several export-promotion initiatives launched by the government to allow exporters to import machinery and equipment at affordable prices so that they can produce quality products for the export market. Also, financial assistance is being provided for export promotion activities on focus countries and focus product countries under Market Access Initiative (MAI) Scheme and Market Development Assistance (MDA) Scheme.
Bharat Tex Special Report 2026 
