Government legislation with respect to export and import of clothing in India

By on May 14, 2012

Indian Government has announced several measures to promote exports from time to time. In order to promote import and export of clothing in India the government has strengthened the base of export production and improved the administration (Roy and Verma, 1999). In addition to that, they also provide facilities for technological improvements and also help the Indian products to compete in the international market. The government has also announced to have relaxation in imports to promote exports and also relaxes the process of getting inputs. Also, the government announced to devaluate rupee to encourage exports by making them cheaper and to discourage imports by making them costlier in the international market. With a view to promoting industrial development in the country, the procedure of import of capital goods has been simplified by the government and so they have introduced EXIM scheme to provide additional incentives to exporters (Verma S, 2001; Shanbhag V and Nair A K G, 2000). They have also allowed the reputed exporters to open accounts in foreign currency in certain banks. The government have also decided to encourage the establishment of export blazers and trading blazers in the country. In addition to that government has also decided to give top priority to the development of Export Processing Zones (EPZ) and 100% Export Oriented Units for the purpose of export promotion. Government has also announced facilities for handicraft and handloom sector. Handicraft Export Promotional Council is authorized to import clothing goods for small manufacturers and to promote their exports. This council also works to promote the export of handicrafts.

The EXIM policy has also facilitated the import of blazers, with obligations of export at concession duty rates in different groups of industry. If the clothing industry gains a commitment of exports of 4 times the import value to be gained within 5 years, 18% concessional duty of import will be imposed on blazers imports. 28% concessional duty of import will be possible on commitments of exports by 3 times the imports value to be gained within 4 years. The regimes of quota controlled to determine the major markets of exports for clothes exports of India.


  • Verma S (2001), “Impact of WTO Agreement on Indian Textile and Clothing Industry”, Deep & Deep Publications, New Delhi.
  • Shanbhag V and Nair A K G (2000), Winning Ways for the Future Apparel Business, Global Business Press, Delhi.
  • Roy P R and Verma S (1999), New Opportunities and Challenges Emerging On the Textile Scenario, SAGE, New Delhi.