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Positivity prevails again as 4 back to back good news hit Indian textile and apparel industry

by Apparel Resources News-Desk

11-March-2019  |  3 mins read

Textile industry

One after another, there have been four major announcements made by the Indian government which has brought cheer back in the Indian textile and apparel industry. These include:

  • New scheme for Rebate of State and Central Taxes and Levies on the export of garments and made-ups (RoSCTL)
  • Scheme for development of knitting and knitwear Scheme
  • Reduction in Hank Yarn Obligation (HYO) from 40per cent to 30 per cent of the total weaving yarn produced for domestic consumption, with effect from January this year.
  • Tamil Nadu’s new integrated textile policy,which might be state-specific but is really worth a mention as a plethora of incentives have beenannounced under it.

The common thread among all these decisions is not just that these were long pending demands but also that these were very much needed. More or less, these initiatives are touching upon every segment of the Indian textile and apparel industry which has wholeheartedly welcomed these.

Various stakeholders called these decisions to be the need of the hour like the demand of central taxes was never accepted earlier, hank yarn obligation request was pending from 15 years, Tamil Nadu’s integrated textile policy came after two decades, special package for knitwear sector was in the air from last few years and it has been finally announced now.

On another positive note, a delegation including senior Government officials and industry representatives visited Japan and were quite happy with the outcome of the visit. Though top companies/brands from Japan like Fast Retailing are seriously in the process to explore India from last five years, they have not been sourcing much. But now again things seem to be taking a positive shape.

Apart from these big steps, in recent one month, Smriti Irani, Union Minister of Textiles has been quite busy inaugurating ETP in Rajasthan and Karanj Textile Park at Mandvi Taluka (Gujarat). The list of her activities to support the industry at various levels is getting longer by the day. So, things are in full swing and one can hope that to see beneficial impacts visible on ground level soon.

Despite all this positivity, still there are many issues or demands of the industry that are yet unattended. Like regarding RoSCTL, the yarn and fabric segment is also demanding to get cover in the same but as India is on the verge of general elections, it will be important to see how these policies or decisions take shape in future, especially after the formation of the new Government. No doubt, still India is missing FTAs in core markets and recent decision on GSP by US again shows that conditions will be more tough but one cannot deny that the above-mentioned steps shall prove to be a big push for the industry.