The India Government Has Launched A Series Of New Incentives To Help Textile And Garment Industry.

The government of India has launched a series of new incentives to assist the textile industry. The India government has said that these programmes are operating under the global economic uncertainty and domestic pressure.

The new special bonus system "SpecialBonusBenefitScheme" was part of the 2009-14 foreign trade policy proposed by textile minister AnandSharma in early October.

The export promotion programme includes incentives for a period of 6 months, up to March 2012.

The special measures in the clothing industry include the extension of key products linked market plan (MLFPS) to clothing exports, and the export of goods to the United States and the European Union with a tariff reduction of 2%.

The new 130 products - including textiles - have been added to the key product plan, apply FOB price 2% tariff deduction.

Polyester yarn, denim, unbleached or bleached cotton cloth, knitted and dyed cotton fabrics are newly added products.

The India garment industry exported to the United States was 36.4% worse than the same period last year due to 6 months' advance by the end of September this year. The government of India said it would provide additional assistance, while exporting to the European Union also declined by 24%.

Textile minister Sharma said that the garment industry has strong potential to upgrade to high standard exports and create a large number of job opportunities.

The United States and the European Union are important markets for India's exports, but at present they have numerous problems to solve.

In order to further enhance exports and expand new markets, 41 countries in Africa, Latin America, Oceania and Central Asia applied tariff reductions of 1% of the total export volume.