Sanjay K Jain, MD, TT Ltd.; Chairman, CITI / Textile Sector Council / NITRA, Delhi

When it comes to textiles specifically, the Government has many unrebated taxes and duties which should be immediately calculated and refunded to all. For example, items like electricity duty, diesel / petrol taxes, market committee taxes, mandi tax, taxes on fertilizers, pesticides and other farm inputs, excess input GST credit on fabric and processing etc. may be studied in detail and liberally calculated to cover all cases. This would take care and offset the withdrawal of various schemes. Refund of taxes is allowed under WTO. Further, the Government can work out incentives on production in areas like power, interest rates where India is not competitive. Also, every company spends a lot on export marketing; the same can be reimbursed by the Government, currently this support is availble for only small exporters.

Dr. A Sakthivel, Vice Chairman, AEPC, Gurgaon

First, one has to be very clear which is a subsidy and not the other way round. As you asked for the suggestion, the

Government can link export income with the income tax rebate as WTO has nothing to do with the income tax rebate. It will be a good support to the exporters. Similarly, there may be labour-linked incentives( not like skill development) and also those which can directly benefit the exporters like Government can pay full contribution of PF. There may be more of such initiatives which are really needed by the exporters.

Saket Jaipuria, ED, Ginni Filaments Ltd., Noida

Sooner or later, it has to be... There is a set threshold for subsidies that India has already agreed upon; so there is no option as such. As a solution or option, Indian Government can work to reduce the cost of business and there are many ways for the same. FTAs and bilateral agreements with countries are much more needed.

Rahul Mehta, President, CMAI, Mumbai

For a long-term solution, there are only two ways to deal with this serious issue. If our export includes any tax, we can get its refund. So in this regard, AEPC should give a comprehensive picture to the Government. Secondly, WTO can’ t go against

a facility that is being given to the entire industry without having bifurcation of export or domestic, and the best example of the same in textile industry is TUF scheme. The Government has to convince to the international bodies that textile and apparel sector in India is very critical with respect to employment generation and it is not only limited to export only.

Prabhu Damodaran, Secretary, Indian Texpreneurs Federation, Coimbatore

What I have observed so far on this issue is that there is no concrete solution to this challenge which is going to be a big threat for the entire industry. We as a trade body observed that linking the incentive schemes with production can be a solution for the same but it will cost a lot to the Government. Sooner or later any kind of incentive or subsidy can be stopped even if it has nothing to do with WTO. The Government‘ think tank’ has to plan such a system which can easily replace the existing system. Meanwhile, I will suggest reducing the interest rates which are quite high in India compared to international scenario. Best solution for this issue raised by you and other challenges of the industry are the FTAs; and to encash such

markets which are not buying from India, like Russia and Brazil. Indian SMEs should get support and focus more on export through road shows and‘ Brand India’ initiatives. Good buyers should visit India on regular basis and should get their business purpose served.

Narendra Goenka, MD, Texport Industries, Mumbai

We as well as the Government are studying this and there are few points on which some arguments / discussion can be done. There are chances that we can have some settlement on these certain points. Personally, I believe that there are chances that both will negotiate and India will get something. If settlement does not happen, then it must be a big challenge.

Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL, Mumbai

As the textile sector in India continues to grapple with the domestic challenges, the sector is also facing the charge that our exports are heavily subsidised. In a bid to protect its domestic manufacturers, the US has recently contested that many schemes in the foreign trade policy( FTP) of India provide subsidies prohibited