Special package for textiles to achieve exports target

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SME Times News Bureau | 30 Jul, 2016
The government is planning to announce a special package of Rs 6,000 crores to to achieve the target of USD 48.5 billion in current financial year, informed an official press release.

The Minister of State for Textiles, Ajay Tamta Friday said, "Government is planning to achieve the target of USD 48.5 billion in current financial year by announcing the special package of Rs 6,000 crores which will boost the employment generation and export of textile and apparel."

In a written reply to a Rajya Sabha question, Tamta said, "It is estimated that China's present share in global export of textiles and apparel will decrease from 40 percent to 33 percent by 2025. This will open an opportunity of more than USD 150 billion for other exporting nations including India to increase its exports."

In an other reply, he said that the government plans to make Textile sector more competitive in global market by providing export incentives under schemes like MEIS, Interest Subvention, MDA, MAI, Duty Drawback etc. Further, the special package announced recently is expected to boost competency of textile and apparel exports in international markets.

The seasonal flexibility i.e. increase in overtime limit from 50 hours to 100 hours and introduction to fixed term employment are already addressed by Government in the said special package.

Apart from this, Government has taken various pro labour and pro industry initiatives like: Reimbursement of entire 12 percent employer contribution to EPFO; Optional EPF for employees earning less than Rs. 15,000; Enhanced duty drawback and subsidy under ATUF for apparel manufacturers and Modifications under Section 80JJAA of IT Act.

All these initiatives will promote economies of scale and modernization of all segments in the Textile and apparel value chain, he added.