Since ancient times, India has been a leading producer of raw cotton, cotton bales, or cotton-based products. The cotton industry is the largest organized sector in the country. For the past four decades, financially 16% and industrial labor have increased by 20%. The total employment rounds up to 15 million in the cotton industry. There are 1,719 mills in India out of which 188 mills are under the public sector, 147 mills under the cooperative sector, and 1,384 are in the private hands.
Maharashtra, Gujrat, Andhra Pradesh, and Madhya Pradesh are the top cotton-producing states in India. They are dominant states because of their weather conditions, which are tropical wet, and dry.
India is also one of the largest cotton bales exporters, the government then and now keeps forming schemes to promote the cotton export. Some schemes are constant and are always applicable.
We have mentioned and discussed these schemes in detail below, understand, and put them to your advantage.
- Merchandise Exports from India (MEIS) Scheme
Started in 2015, the MEIS provides duty rewards to eligible cotton export consignments for about 2-5% of the FOB value, in specific countries as per the criteria prescribed under the scheme.
- Interest Equalization Scheme
The Interest Equalization Scheme was introduced for pre and post-shipment rupee export credit for five years, initiated on April 1, 2015. The scheme was generated to provide relief to exporters from India who face extreme competition because of higher interest rates than competing countries like Vietnam, China, etc.
- Market Access Initiative (MAI)
Market access initiatives (MAI) schemes are a promotion scheme formed to act as a catalyst to promote India’s export on a sustained basis. The scheme is formulated on a focus product-focus country approach to evolve both specific markets and specific products through market studies and surveys. Assistance would be provided to export promotions organizations, trade promotion organizations, national-level institutions, research institutions, universities, exporters, etc. to enhance export by accessing new markets.
- Market development assistance (MDA)
Marketing Development Assistance (MDA) Scheme is to support/assist exporters/EPCs to undertake export promotion activities for their product(s) and commodities through Focus export promotion programmes in specific regions abroad viz. FOCUS (LAC), Focus (Africa), Focus (CIS), and Focus (ASEAN + 2) programmes. The incentives under this Scheme are primarily given to developing the already accessed markets abroad. The utilization of the scheme is administered by the E&MDA Division in the Department of Commerce.
Exporters need to periodically look out for such schemes, as they can definitely help advance their export and also help the trade financially. With all the preceding information, another thing that can help exporters to grow in new markets is Tradologie.com.
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