The textile industry of India has been facing a
major blow, one of the worst in its history, pertaining to the slowdown that
hit the global textile and clothing markets in April 2014. Due the termination
of region FTA by other competing nations, exports from India have encountered
an all-time low owing to its tariff barriers, expensive cotton, high fibre
price and the unprecedented delay in the pay-out of the TUF subsidies. Given
the scenario, the industry had long been demanding the extension of additional
incentives through the Merchandise Export from India Scheme (MEIS). The demand
also pressed for a grant of 3% interest with respect to the export of all
textile merchandise, at least till the time that the exports reach their
projected potential growth.
