Textile Non Trade Policies



Technology Upgradation Fund:

As there is huge competition in international Textile Industry therefore the Indian Textile Industry has to be technologically well versed. Industry has been facing problem with high capital cost to improve the technology and modernization of Textile and Apparel Industry. Under the TUF scheme, Textile and Apparel Manufacturing Units can take Loan from IDBI Bank, SIDBI, and The Industrial Finance Corporation Of India at interest rate of 5 % points lower than normal rates. This scheme also helps for IT Development, Product Development, Diversification and Research & Development through funding. In 2006-07 Rs.535 crores were allotted for the scheme and, Rs.911 crores have been allocated for the same for 2007-08.

Cotton Technology Mission:

To improve the performance of Cotton sector, there is need for improvement in Research & Development, quality and productivity of products. The Marketing Infrastructure also needs improvement. The Govt. of India is aimed to increase production of cotton by 50% with improved quality and productivity.


Quota Entitlement Policy:

Textile and Apparel Industry in India was running under the terms of Multifiber Arrangements (MFA) over the many years. Under MFA, USA, European Union (EU), Canada, and Norway did negotiation for bilateral agreements with India and other textile exporting countries that had limits or quota on their specific textile exports. On 1st January 1995, the MFA was replaced by the Agreement on Textiles and Clothing (ATC) with the effect of WTO. Under ATC, quotas were eliminated and agreement provides complete Integration of Textile and Apparel industry came out with Quota Regime. This development came on 1st January 2005 under the World Trade Organization (WTO) Agreement on Textiles & Clothing.

Construction of Apparel International Mart:

Apparel Export Promotion Council has constructed an Apparel International Mart (AIM) at Gurgaon. This will provide showrooms on lease and license basis to the established exporters to showcase their products.