Certain knitted fabrics have been excluded for concession under the Merchandise Exports from India Scheme. Most knitted fabrics including those with Lycra have been left out in the list of items covered for export benefits. Knitted fabric with Lycra are value added products that are used widely in garments.

Industry feels if any benefit is granted to fabrics then it should cover the entire range. Exporters too want knitted fabrics to be included. They want export sops to be given to value added products such as exports of cotton dyed and printed fabrics and made-ups to African countries.

These products, including khangas and khatangas, are used in traditional African dresses, and are predominantly manufactured by small and medium units in India. For the first time a decision has been taken to include exports of cotton fabrics – woven and knitted – to Bangladesh and Sri Lanka. The decision would play a major role in boosting fabric exports to both countries, strong garment manufacturing and India is known for fabrics.

The Merchandise Exports from India Scheme is an incentive for merchandise and services exports. Under this scheme, exports of notified goods to notified markets are freely transferable duty credit scrips on realised FOB value of exports in free foreign exchange at a specified rate.