10 March 2022, Mumbai:
India’s Commerce Ministry plans to grant a few new incentives to textile exporters to expand their business in European and other markets.
Europe is a major market for Indian textile products including apparels.
Incentives for this market will help India boost exports and help Indian textile companies enter the European markets that currently charge heavy duties on Indian exports.
The proposed incentives will be aimed to offset these levies.
ALSO READ: In 2021, India's domestic textile exports would generate US $ 6.68 billion in income
While the rate of incentive is still being debated, it would be big enough to offset the proposed carbon tax of the EU and a few other levies.
The proposed incentives are being discussed at a time when the European Union’s proposed Carbon Border Adjustment Mechanism is likely to increase tariffs on Indian goods.
India has opposed the proposed tariffs, saying they make it difficult for Indian companies to compete against China and other manufacturing hubs.
The incentive will help India support a level playing field for Indian companies, exporting textile products to Europe.
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CREDITS: Apparel Resources report.
