Cabinet approves reforms to boost employment, textile exports

Top Stories

»	49% Indian startups now from tier 2, 3 cities: Jitendra Singh
»	'India ranks 3rd in global startup ecosystem & number of unicorns'
»	Tripura exported over 9K tonnes of pineapples in 2 years
»	CPI inflation eases to 6.71% in July, IIP falls to 12.3%
»	Rupee depreciates 12 paise to close at 79.64 against US dollar

SME Times News Bureau | 08 Dec, 2016
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the reforms to boost employment generation and exports in the made-ups, or textile, sector.

It further approved few interventions which have been approved in a time-bound manner within the budget of Rs 6,006 crore for the apparel package with the objective of creating large scale direct and indirect employment of up to 11 lakh persons over the next three years in the made-ups sector.

"The interventions include providing production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10 per cent for made-ups similar to what is provided to garments based on the additional production and employment after a period of three years," said a cabinet communique.

"Extension of Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme (for apparel) to made-ups sector for providing additional 3.67 per cent share of employer's contribution in addition to 8.33 per cent already covered under PMRPY for all new employees enrolling in EPFO for the first three years of their employment as a special incentive to made-ups sector," it added.

The interventions also include extension of Rebate of State Levies (ROSL) (for apparel) scheme to made-ups sector for enhanced duty drawback on exports of made-ups and simplification of labour laws.

The simplification of labour laws include increasing permissible overtime up to 100 hours per quarter in made-ups manufacturing sector and making employees' contribution to EPF optional for employees earning less than Rs 15,000 per month.

"The interventions are expected to boost employment in the textile sector and create employment for up to eleven lakh persons, lead to increase in exports and enhance benefits to the workers in the textile and apparel sector," said the statement.