Mumbai, Dec 6 (PTI) The textile and agri industrytoday said the government's mid-term review of ForeignTrade Policy (FTP) would help boost exports inlabour-intensive sectors like textiles and agriculture.
"The mid-term review of FTP is progressive,growth-oriented and I am glad the government has recognizedthe urgent need to address the challenges being faced by theexporters on account of the GST roll-out by focusing onreducing procedural burden," the Cotton Textiles ExportPromotion Council (Texprocil) chairman Ujwal Lahoti said.
The revised FTP has increased MEIS rates across theboard by two per cent for labour intensive sectors. Earlierthe MEIS rates for garments and made-ups were increased fromtwo per cent to four per cent. The enhanced MEIS rates willprovide the much needed relief to exporters and will certainlyhave a positive impact on the overall exports especially oftextile products, Lahoti said.
He also said the increase in the validity of dutycredit scrips issued under the MEIS from 18 months to 24months will increase the utility of such scrips.
With regard to export strategy, the Texprocil chairmansaid it is reassuring that the revised FTP identifies marketsin Africa and Latin America to be its new focus areas as partof the government's goal of exploring new markets.
The textiles sector especially technical textiles willbenefit immensely from this scheme. Also, it allows domesticprocurements which will promote "Make in India," initiative,Lahoti added.
Lahoti pointed out that cotton yarn continue to bedenied any benefit under the FTP.
Ruchi Soya Industries managing director and CEO DineshShahra said, "The increase of Rs 1,354 crore in the incentivesfor agriculture and related products will given an additionalboost to agri industries, which will in turn benefit allstakeholders including the farmers." It is heartening to see agro-processing as a focusarea in the government's drive to increase exports to new andun-tapped markets, and this is a big positive for theindustry. We also look forward to the new agricultural exportspolicy to give a long-term direction to the industry through astable policy regime, Shahra said.
Meanwhile, engineering exporters' body EEPC India saidthat the RBI needs to help exporters by reducing the cost ofborrowing.
"The RBI could have joined the government in helpingthe exporters by reducing the cost of borrowing," EEPC Indiachairman T S Bhasin said.
The RBI policy review has taken place a day after thecommerce ministry has come out with a pragmatic review of theForeign Trade Policy. As exports are picking up due to demandpick up in some of the key markets, the domestic exportersmust be strengthened to face the increasing competition fromcountries like China where the cost of capital issignificantly lower than India, Bhasin said. PTI AP DSKDSK.
This is unedited, unformatted feed from the Press Trust of India wire.