Raise Duty Draw Back Rate: Indian Textile Ministry
On the sidelines of an event in Coimbatore, Dr K S Rao, Union Minister of Textiles, disclosed that the Ministry of Textiles has put forward a proposal to the government to increase the duty draw back rate by five percent. This proposal was sent across after the European Union’s decision to grant Generalised System of Preferences Plus (GSP+) status to Pakistan. Fearing that this move could impact the country’s textile industry, as EU is the largest textile market for India, the Ministry sent forth a proposal to increase the duty draw back given to exporters by five percent. Rao also added that although India’s share is a mere 4.5 percent in the global textile and apparel trade, while China’s share is 33 percent, there is an opportunity for Indian manufacturers to increase their exports as China is diverting its focus to other sectors. And it is for this reason that India is pushing for this draw back duty rate raise.