Raw silk, which is imported from China, is becoming costlier thus, India’s silk fabric exporters are looking for incentives to remain competitive. They hope to meet commerce ministry officials to discuss the withdrawal of export incentives under the Foreign Trade Policy 2015-20. Members of the Silk Association of India say exporters could get a five per cent incentive on woven silk fabrics, which was applicable on exports to all countries under the previous Exim policy (2009-14). As per the new policy, export of silk fabrics made only on handloom is eligible for a five per cent incentive and it was lowered to two per cent for power looms.

Under the new policy, exports to one of the major silk markets are no longer incentivised, said Vikram Tantia, President of the Silk Association of India. East Asia, Africa, and Australia too are major markets for silk exports. Besides, several exporters using powerlooms are not eligible for incentives from states such as Karnataka, Bengal, UP, and Bihar.