Financial Daily from THE HINDU group of publications
Monday, Apr 01, 2002

Port Info

Group Sites

Industry & Economy - Readymade Garments

Focus on cluster-based units -- Tirupur hosiery sector hails policy thrust

G. Gurumurthy


THE new long-term Exim Policy unveiled by the Union Commerce Minister, Mr Murasoli Maran, on Sunday has elated the Tirupur knitwear industry.

For the first time, the Commerce Ministry has recognised the cluster-based industry while formulating the export policy. Making a special mention of Tirupur as a part of the cluster-based hosiery (for cotton wears) sector along with similar textile clusters such as Panipat (hand-woven woollen) and Ludhiana (woollen knitwear), Mr Maran has tried to widen the export promotion benefits available to these clusters, so that the benefits of the Exim policy initiatives percolate down to these `centres of export excellence.'

The export thrust given to the Tirupur knitwear sector in the 2002-2007 Exim Policy, includes extending EPCG eligibility to all common service providers in the Tirupur exporting zone. This, according to Tirupur industry sources, should encourage industries directly connected with the hosiery manufacturers.

Another special dispensation to cluster-based exporting units is the extension of a market access initiative (MAI) programme.

The access of funds under MAI to promote new market development, would be made available to recognised associations of exporters.

This should encourage new marketing initiative such as brand promotion.

The Tirupur hosiery exporters are currently pursuing a generic brand for knitwear products.

The new policy has also allowed hassle-free import of fabric by the exporters under the already operating duty-free import of trimmings and embellishments up to 3 per cent of their f.o.b value of exports.

Similarly, the Commerce Ministry has also conceded the garment exporters' suggestion to allow variation of 10 per cent in GSM for fabrics imported under the advance licence scheme for re-exports, considering the exigencies in handling garment fashion trends.

The Tirupur Exporters' Association has hailed the new Exim policy for its focus on cluster-based exporting industries.

Send this article to Friends by E-Mail

Stories in this Section
Global airlines still keen on `Maharaja'

Deadline for zero revenue gap may be pushed back
CAG raps Govt for poor fiscal management
Q3 current account posts surplus after nine years
Petrol, diesel imports through IOC to continue
CF lamps: Ray of hope amid power crisis?
Chamber welcomes new tariff order
Raichur thermal power station units 3, 4 -- ICICI-Lombard emerges lowest bidder for risk cover
Staggered power cuts
Subsidy to SSIs on the decline
Farm exports freed; thrust to SEZs -- Maran gives Exim policy a friendly push
Bleak export scenario set to change: Maran
Simplified norms; specific packages
New initiatives to drive export growth
Salient features of the Exim policy 2002-07
No to global financial centre in SEZs
Extra revenue outgo on sops at Rs 1,000 cr -- Total outflow may top Rs 27,000 cr in 2002-03
`We want a critical mass of exports'
`Path-breaking policy, will boost exports'
Maran bullish on 1 pc target -- Package for services export coming
Offshore branches will lead to easy transactions: Ballabh
Exports to new markets to go up 15-30 pc
Textile industry upbeat on retention of schemes
`Maran's message is export or perish'
No incentives for States: GMCI
Comprehensive, says Cochin SEZ
Chambers hail Exim policy
`Boost for agri exports'
Growth-oriented policy, says FIEO
Liquor sector wants lower CVD move rolled back
Gem trade wary of diamond duty cut
Focus on cluster-based units -- Tirupur hosiery sector hails policy thrust
Solid motor for PSLV 3rd stage
ITI removed from sell-off list on `strategic' grounds
Four bidders for Nizam Sugars unit
ITDC divestment proceeds to be shared with States
Targeting self-help groups for rural development -- IDE offers drip irrigation systems for small far
Hyderabad Engagements
Competition for architects

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line