IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2009 | Removal date: open ended
Still in force

Tax-based export incentive

In early 2009, the government of India has made a number of changes to its Focus Product Scheme and the Market Linked Focus Product Scheme in the textile sector. The Focus Product Scheme was initially designed in 2006 and seeks to incentivise textile producers to engage in exports. The Market Linked Focus Product Scheme launched in April 2008 and provides export assistance to designated products. Since the beginning of 2009, the Indian government has included the following products in these schemes.
 
Since 1 January 2009, exporters of garments to Australia, Japan and Brazil may acquire a 2.5 percent incentive on exported products.
 
From 23 February 2009, exporters of hand-made carpets and other textiles floor coverings may apply for a 5 percent incentive.
 
For the period of 1 April 2009 to 30 September 2009, exporters of garments to the European Union and the USA may receive an incentive of 2 percent of their free on board (f.o.b.) value.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

272 Carpets & other textile floor coverings
5702 Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including “Kelem”, “Schumacks”, “Karamanie” and similar handwoven rugs.
570210 “Kelem”, “Schumacks”, “Karamanie” and similar handwoven rugs
570220 Floor coverings of coconut fibres (coir)
570231 Of wool or fine animal hair
570232 Of manmade textile materials
570239 Of other textile materials
570241 Of wool or fine animal hair
570242 Of manmade textile materials
570249 Of other textile materials
570250 Other, not of pile construction, not made up
570291 Of wool or fine animal hair
570292 Of manmade textile materials
570299 Of other textile materials
282 Wearing apparel, except fur apparel
6111 Babies' garments and clothing accessories, knitted or crocheted.
611120 Of cotton
611130 Of synthetic fibres
611190 Of other textile materials
6114 Other garments, knitted or crocheted.
611420 Of cotton
611430 Of manmade fibres
611490 Of other textile materials
6209 Babies' garments and clothing accessories.
620920 Of cotton
620990 Of other textile materials
6210 Garments, made up of fabrics of heading 56.02, 56.03, 59.03, 59.06 or 59.07.
621010 Of fabrics of heading 56.02 or 56.03
621040 Other men's or boys' garments
621050 Other women's or girls' garments
6214 Shawls, scarves, mufflers, mantillas, veils and the like.
621410 Of silk or silk waste
621420 Of wool or fine animal hair
621430 Of synthetic fibres
621440 Of artificial fibres
621490 Of other textile materials

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