India Silk Export Promotion Council raises concerns with Minister of Commerce & Industry
Recently, a delegation led by Satish Gupta, Vice-Chairman of the Indian Silk Export Promotion Council (ISEPC) called on Nirmala Sitharaman, Minister of State for Commerce & Industry to apprise her about the problems faced by the Indian Silk Industry and Indian Silk Export Promotion Council. The council has raised concerns about the government removing the marketing development assistance (MDA) on their export initiatives from 2015-16 and also on non-approval of India International Silk Fair and RBSM (Reverse Buyer Seller Meet). The government’s move of not to incentivize exporters of silk and silk products under MEIS (Merchandise Exports from India Scheme) also did not go well with the industry body as the incentive under Focus product scheme for silk was 5% whereas, it has now been reduced to 2% under MEIS only for Silk Fabrics and RMG and that too restricted to USA and European countries. The council in its representation said that, it is a matter of great concern as to why inspite of the fact that India is the second largest producer in the world, its share of exports in the world market is negligible and had been witnessing a declining trend till 2013-14. However, in 2014-15 due to timely intervention in initiating export promotional measures in India and abroad by the ISEPC, declining trend has not only been arrested but witnessed a growth of over 10%. "The reasons are obvious that whereas the producer/trader of silk and silk products find domestic market more attractive and lucrative the export market is highly competitive and challenging. In case the Indian export of silk and silk products is provided support and protective policies, we are confident that India can reach the export level of US $ 1000 million by the year 2019-20," said Satish Gupta. The Indian silk goods are being exported to the traditional major markets like the USA and European countries and small markets of Asia Region. The silk goods export earnings decreased over the years due to global recession. The export earnings during 2014-15 were Rs. 2751.85 crores.
July 1, 2015 | 8:25 pm IST.
to success.