The Central government is in the process of introducing alternative schemes to promote exports which would improve competitiveness. It recently introduced a package for the MSME sector which increased the interest subvention on pre-shipment and post-shipment finance for exports to 5 per cent from the earlier 3 per cent.
Under this package, GST- registered MSMEs would get 2 per cent interest rebate on incremental loan up to Rs 1 crore. Improvement in India's ranking in the World Bank's Ease of Doing Business will help boost exports. The results of this for textiles exporters, remarkable improvements are visible at the ports, customs and regional offices of DGFT EDI systems.
According to Texprocil, India's cotton textile exports grew by 26 per cent to $6,235 million in the first six months ended September 2018. The country exported cotton textiles (raw cotton, yarn, fabrics and made-ups) worth $4,917 million in April-September 2017-18. However, exports of textiles and clothing declined by 3 per cent with exports of readymade garments registering a steep decline of 16 per cent during H1FY19.
