Reducing cap on free exports for promotion to hit innovation: Exporters
Himanshu Vatsa | The Dollar Business The government, on Thursday, restricted free exports of goods by large exporters for promotional activities to Rs.10 lakh. “Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs.10 lakh or 2% of average annual export realisation during preceding three licensing years, whichever is lower,” stated the notification issued by the Directorate General of Foreign Trade (DGFT). Earlier, the cap was Rs.10 lakh or 10% of the annual export value, whichever is higher. Exporters feel the move will not only hamper India’s manufacturing growth but will also restrict innovation. “The new rule will mainly affect merchandise exports, particularly textile and ...
Indian handloom industry in dire straits as production, exports decline
Jayashankar Menon | @TheDollarBiz The government says that India’s total textile exports managed to recover to around $39.3 billion in FY2013-14, which is up about 12.5% from the previous year and a significant increase from the 5.32% decline seen in the previous year. The government expects textile exports to grow again to $45 billion in FY2014-15, a jump of around 14.5%. However, it’s not all rosy for the handloom sector which continues to be entangled in a knotty situation. According to the Ministry of Textiles, handloom production is expected to decline 4% to around 1,116 million sq. m. in FY2014-15, compared to increases seen in all other sectors: mill (6%), powerloom (3%), and hosiery (7%). Meanwhile, the share ...
