India contributes 20% to world spindlage capacity, the second highest spindlage in the world after China. It contributes 6% to the world rotor and 62% to the world loomage.
12% of the world production of textile fibres and yarns is from India. India is the largest producer of Jute, second largest producer of silk and cellulose fibre / yarn, second largest producer of cotton and fifth largest producer of synthetic fibres / yarns.
Concept of EOU: No VAT, No excise Duty, 75% Export and 25% Domestic Sale allowed
Concept of SEZ/ EPZ: Relaxed Labor Laws, Prompt custom clearance. A Special Economic Zone (SEZ) is defined as a specially delineated duty free enclave for trade operations. This area is reckoned as a foreign territory for the purpose of duties and tariffs.
Technology Up gradation Fund Scheme (TUFS); The industry is being modernized via an exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. Eligible firms can receive loans for upgrading their technology at interest rates that are 5 percentage points lower than the normal lending rates of specified financial institutions in India. This interest rate incentive is intended to bring the cost of capital in India closer to international costs.
Merchant export should be allowed. It means abolishing the levying of VAT and other taxes on the export of goods and services by intermediary companies and provide them with the same privileges that producer-exporters enjoy.
GSP should be issued by Independent, Non Government organizations.
Uzbek producers have to compete with countries that enjoy favorable trade agreements with duty-free or low-duty export of their goods to the largest markets of Europe and USA.
For Uzbekistan’s exports to such markets, duties constitute 14-18% of the amount of contracts. Cotton yarn, fabrics, ready-made garments and knit-wear exported by Uzbekistan to the EU, for example, suffer from customs duty at 4.2%, 8.4%, 9.6% of the total cost, respectively. On the other hand, imports from some countries, such as Turkey, Syria, Egypt and Nigeria are free of duty.
In order to enhance the involvement of the private sector in export operations, an Export-Import Bank for Uzbekistan may be created which can act as a catalyst to banking services which could provide export crediting and insurance of export loans