India’s Ongoing FTA Negotiations with EU, Australia, UK, Canada, Israel

Government under Market Access Initiative scheme provides financial support to various Export Promotion Councils and Trade Bodies engaged in promotion of textiles

Minister of State for Textiles Smt. Darshana Jardosh in a written reply in the Lok Sabha on 30 March 2022 informed that India and UAE have recently signed a Free Trade Agreement which is likely to boost exports of Indian textile and apparels. India is currently in the process of negotiating FTAs with EU, Australia, UK, Canada, Israel and other countries/ region.

India is facing tariff disadvantage in some of the markets such as EU, UK etc. as compared to neighbouring competing nations like Bangladesh, Cambodia, Sri Lanka etc. The Government, under its Market Access Initiative (MAI) scheme provides financial support to various Export Promotion Councils (EPCs) and Trade Bodies engaged in promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets etc. Further, in the times of COVID-19 pandemic, virtual exhibitions were also organised by EPCs as an alternative mode of marketing, in order to tap opportunities in the global markets.

In order to make textiles products cost competitive and adopting the principle of zero rated export, government has extended continuation of Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) till 31st March 2024. The other textiles products (excluding Chapter 61, 62 and 63) which are not covered under the RoSCTL are covered under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products.

The Amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016 for one-time capital subsidy for eligible benchmark machinery. Segments which have got higher employment and export potential such as garmenting and technical textiles are eligible for capital subsidy. In order to supplement its efforts of textile industry in creating jobs and also to address the skilled manpower needs of the industry, Ministry of Textiles is implementing Samarth- Scheme for Capacity Building in Textiles Sector (SCBTS) for the entire value chain of textiles except Spinning and Weaving in the organized sector. Ministry is implementing Textile Cluster Development Scheme (TCDS) from 2021-22 to 2025-26 with a view to create an integrated workspace and linkages-based ecosystem for existing as well as potential textile units to make them operationally and financially viable with a view to bring benefits of critical mass for customization of interventions, economies of scale in operation, competitiveness in manufacturing, cost efficient, better access to technology and information, etc. Further, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country, Production Linked Incentive (PLI) Scheme for Textiles has been launched. Government has also approved setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites to develop world class infrastructure including plug and play facility.