INDIA: Downslide feared in textile exports

NEW DELHI: The annual supplement to the Foreign Trade Policy (FTP) has baffled the exporters as there is a fight between the commerce and finance ministries on the exemption of the 12.36% service tax on exports. The exemption was eagerly awaited by the exporters.

The commerce ministry said that the waiver announcement was not made unilaterally and that the decision was taken after meeting the Prime Minister. Earlier the finance ministry had said that the decision was suo moto.

Textile exports which are on the growth path would see a downslide if steps are not taken immediately. The export performance of these sectors which are labour-intensive is not satisfactory.

The Federation of Indian Export Organisations (FIEO) president G K Gupta said "The announcement of exexption of service tax on exports in FTP by the commerce minister was thought as a boost for the flagging export market. He said both the commerce and finance should take a combined decision about the exemption. He wondered why the decision was made public till an aggreement has been reached.

Gupta said the FIEO has received reports from many labour-intensive and employment-intensive sectors that there will be substantial growth in exports in 2007-08.

Textile exports showed a growth of 7% in 2006. If the service tax on exports is not abolished they are not expected to show any increase he added.

Mr. Gupta said said the appreciation of the rupee by over 13% last year has badly hit exporters. The has RBI also failed to counter the reverse trend in FTP he concluded.


Send your News/Releases for publication to [email protected]
Added: April 26, 2007 Source: Agencies
Start script - 1534437600.3668 Start news id check - 1534437600.3669 After news id check - 1534437600.3672 After cookie_code - 1534437601.3087 Before news detail - 1534437601.3087 After news detail - 1534437601.3095 Start cat select - 1534437601.3095 After cat select - 1534437601.3097 before preg replace - 1534437601.3098 After preg replace - 1534437601.3098 Before tag engine - 1534437601.3098 After tag engine - 1534437601.3136 Before mptt engine - 1534437601.3136 After mptt engine - 1534437601.3136 Before related engine - 1534437601.3136 After related engine - 1534437601.314 Before update hits - 1534437601.314 After update hits - 1534437601.3142 After update news_hits - 1534437601.3162 After mem_only_views - 1534437601.3163 -------------------------------------------------- Total Exec time:- 0.94949984550476
AddThis Social Bookmark Button   Tell a friendBookmark AddThis Feed Button
Related News:

Website design by InWiz • © - 2000-2018. Internet Wizards All rights reserved. About usTerms & ConditionsDisclaimerPrivacy policy • 16-08-2018