The expectations of stake holders from the textile and garment industry were crushed beyond hopes, when the interim union budget was announced last week. The trade was expecting a slew of measures to revive flagging exports from the sector.
But, there is still hope for the exporters from the textile and garment industry. The government is likely to announce an interim foreign trade policy, which might include measures like cutting transaction cost and simplifying procedures to help them compete globally.
The measures may not include any direct financial benefit, but could be policy changes like increasing time limits for meeting export obligations against duty free imports, revalidation of expired licenses for duty free imports, allowing to sell a bigger percentage of goods in domestic markets to 100 percent EOU's, etc.
But the biggest policy measure could be claiming the duty drawback from the Govt, without realizing the export proceeds, as payments are getting delayed. The existing duty drawback scheme is subject to receiving payments, before claiming the duty drawback.
Fibre2fashion News Desk - India
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