There is a feeling India's foreign trade policy will affect exports of value added products like cotton dyed and printed fabrics and made-ups to African countries.The policy has scrapped benefits on exports to African countries. Exporters have urged the government to include exports of value added products to Africa.

The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrip of two per cent, three per cent and five per cent to exports of notified products to certain specified countries. However, the scheme does not include exports of value added and labor intensive products like cotton dyed and printed fabrics and made-ups.

In India’s earlier foreign trade policy, exports of cotton fabrics and made- ups to many African countries were granted duty credit scrip at four per cent of the FOB value of exports in general and in some cases seven per cent.

Exporters say the share of textile exports to the African region is less than five per cent and there is huge potential to increase this share if adequate export benefits are extended.

Indian exports go to African countries like Mauritania, Mali, Angola, Senegal, Togo, Ghana, Kenya and Tanzania.