SME Times News Bureau | 17 Jun, 2019
of FICCI Textiles Committee met Smriti Zubin Irani, Minister for Textiles and
Women and Child Development recently and impressed upon her to launch a special
mission for synthetic fibre and textiles value chain to make Indian industry
competitive in the global trade which is predominantly done in the man-made
fibre (MMF)-based items.
Global textile markets
are swiftly shifting from exports of cotton yarn to manmade fibres. Hence,
India must take urgent steps to keep pace with the global markets by increasing
production and exports of MMF based products.
per capita consumption of Man-made Fibre is around 3.0 kg, whereas the world
per capita consumption is 12 Kg. There is a wide gap and tremendous
opportunity for enhancing the consumption of MMF based textiles and clothing in
needs to announce a MMF Textile Mission for giving thrust to development of
Synthetic and Specialty fibres in India by making the value chain competitive
and providing raw materials at competitive prices, said FICCI.
mission mode approach with specific time bound targets will help India to
garner higher export share in global markets and new employment opportunities
Other important issues
raised by the FICCI delegation were need for simplification of GST rates for
the entire textile value chain (one rate for the entire textile value chain),
rising imports of garments from Bangladesh and need for separate housing scheme
for garment workers in the cities.
Currently, due to
different GST rates in the textiles value chain refund accumulates due to
inversion. Collapsing all these rates into a single rate of 12% does not build
up input tax credit, does not lead to refund of input tax credit which would
imply less paperwork and less applications for the industry, noted FICCI.
Further, garment imports
from Bangladesh have increased almost by 82% in 2018-19 vis-a-vis 2017-18 (from
US $ 200 million to US $365 million) pointed out FICCI.
garments have got 12-15% advantage vis-a-vis domestic garments in the post GST
period. FICCI suggested that under the SAFTA agreement only those goods should
be exempted from custom duty, whose raw material is also manufactured by SAFTA
and fabric forward rules of origin are required under SAFTA to ensure any duty
free garment import is made up of yarn or fabric from within the SAFTA
To increase the
employment of women workers in garment sector, FICCI suggested to increase the
deduction under IT Act Section 80JJAA for women work force from present 30% to
60% per annum threshold.
Section 80JJAA provides deduction in respect of employment of new employees
drawing emoluments up to Rs 25,000 per month (explanation- At present, under
section 80-JJAA of the Act, a deduction of 30% is allowed in addition to normal
deduction of 100% in respect of emoluments paid to eligible new employees who
have been employed for a minimum
period of 240 days during the year.
minimum period of employment is relaxed to 150 days in the case of apparel
industry). This would encourage employers to employ women work force which is
now constrained by social and statutory conditions
requested the Minister to come out with a Worker Housing scheme for apparel
sector in the cities. The need for such a scheme arise from the growing
difficulties faced by women garment workers due to lack of safe and
conveniently located accommodation in cities.
Also, to arrest and increase the declining female workforce ratio
in the country, it is important to have such a scheme for the women workers in
and around cities, noted FICCI.