The Government has restored the benefit of the Incremental Exports Incentivization Scheme (IEIS) for cotton yarn. “This will certainly 
go a long way in increasing exports of cotton yarn and would contribute towards achievement of the overall exports target for cotton textiles”, said Mr. Manikam Ramaswami, Chairman, Cotton Textiles Export Promotion Council (Texprocil).
According to him, this will also strengthen the confidence of the exporting community with regard to the stability of policy provisions, which is crucial for taking long-term perspectives while negotiating export orders.
IEIS which extends a two per cent duty credit scrip on incremental exports achieved during 2013-14 as compared to 2012-13 was withdrawn on exports of cotton yarn in September last. Since then, Texprocil has been relentlessly representing to the Government for its restoration.
The Government has also increased the all-industry rates of duty drawback on knitted cotton fabrics with a lycra content of five per cent and more based on representations from Texprocil. “This will increase exports of lycra-based fabrics whose share in the total world trade in textiles is increasing significantly,” said Mr. Ramaswami, who also expressed his confidence that India will soon play a major role in exporting lycra-based fabrics.
He has profusely thanked the Department of Revenue and the Ministry of Textiles for accepting the Texprocil proposals and implementing them.