MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SMT. PANABAAKA LAKSHMI)
(a) & (b): Yes, Madam. Government has, Vide Notification No. 99/2011-Customs dated 9th November,2011
allowed duty free import of textile items from the Least Developed Member countries (LDCs) of South Asia
Free Trade Agreement (SAFTA) including Bangladesh, Bhutan, Maldives, Nepal and Afghanistan. It is too early
to assess the volume of clothes imported from Bangladesh and other countries following the duty free import
of textile items.
(c) & (d): There would be a positive impact of free trade with various countries on domestic garment / fabric
manufacture as assessed at the time of signing of various free trade agreements. The exchange of tariff
concessions between India and the other countries would lead to growth in bilateral trade and investment
in these sectors resulting in economic benefits to India. The agreements also provides for bilateral safeguard
mechanisms to address sudden surge in imports to protect the interest of domestic textile industry like concept
of Negative list, imposition of safeguard duties and Rules of Origin.
(e): Government has introduced several export promotion measures in the Union Budget 2011-12 as well as through
schemes of Foreign Trade Policy 2009-14, including incentives under Focus Market Scheme and Focus Product Scheme;
enhancing the coverage of Market Linked Focus Product Scheme for textile products and extension of Market Linked
Focus Product Scheme etc to boost the Indian textile industries.
