India Introduced Special Bonus Preferential System To Encourage Garment Exports

The India government has launched a series of new incentives.

The new special dividend preferential system "Special Bonus Benefit Scheme" is part of the strengthening of the 2009-14 foreign trade policy put forward by textile minister Anand Sharma 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 key product link marketing plan (MLFPS), which extends to garment exports, and exports to the United States and the European Union enjoy a 2% tariff reduction.

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

Polyester yarn,

Due to the 6 months ahead of September, the export of India's garment industry to the United States declined by 36.4% compared with the same period last year. The government of India said it would provide additional assistance, while exports 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.