Indian textile associations want some more time to fulfill their export obligations under the export promotion capital goods scheme. Mills say they were not able to fulfill the obligation due to recession for the last six years. So they want time and they say the export obligation should be only six to eight times the duty saved.

India’s share in the international market is 32.9 per cent for cotton yarn, 3.53 per cent for cotton fabric, 11.25 per cent for cotton made-ups and 3.86 per cent for garments. One problem facing the industry is that subsidies under the Technology Upgradation Fund scheme are yet to be refunded. The Associations say the delay has impacted projects. They want the Centre to allocate an additional Rs 3,000 crores for the scheme in the upcoming Budget.

The Indian share in global textile and apparel exports is miniscule due to various levies on manmade fiber made products. The industry wants import duty, special additional duty, and anti-dumping duty to be removed and the central excise duty on manmade fiber to be reduced.

The government stopped extending benefits to the industry from June 2010 to April 2011. One specific request the industry has is that raw material costs, costs of converting raw material to finished goods as well as power tariffs should be less than or equal to global prices.