The increments in the current account deficit due to high surge in imports and severe declines in exports are worrisome for Indian economy growth story. These odds have attracted the attention of government. And Government got an opportunity to take mid-course corrections with its 3rdannual supplement in FTP 2009-14 to have catalytic impact for boosting India's exports further. Under the third annual supplement announced on 5th June12, the government has again broadened some of the ongoing policy supports. The government has now focussed more on employment intensive sectors and have administered some more fiscal incentives through focus market scheme, focus product scheme and market linked focus product scheme. A major thrust has also been given under this supplement for promoting domestic value addition and value added exports from India. Since Textile and Clothing (T&C) Sector of India is known for its labour intensive character and there is a need to promote exports with more value addition in this sector, an evaluation of Ftp supplement in the context of T&C sector is warranted.


The Govt. of India, Department of Commerce announces Foreign Trade Policy (FTP) once in every five years. The current foreign trade policy covers the period 2009-2014. The FTP is updated through various annual supplements during the period and the modifications,improvements and new schemes are notified by Director General of Foreign Trade(DGFT).


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