The South Gujarat Chamber of Commerce and Industry (SGCCI) has proposed a number of key recommendations emphasising how to reduce import dependency and grow domestic manufacturing capacity. SGCCI’s delegates noted that allowing 100-percent Foreign Direct Investment would lead to the most effective attraction of global machinery manufacturers to set up manufacturing in India. SGCCI recommended creating a 100 percent Foreign Direct Investment policy exclusive for machinery manufacturing and that a dedicated Production-Linked Incentive (PLI) scheme for textile machinery be created.
A high-level meeting organised by the Ministry of Textiles convened in New Delhi, for which key stakeholders in the industry assembled to streamline the path to self-reliance in India’s textile machinery. Chaired by Textile Commissioner M. Beena, the meeting concluded with an extension of the Quality Control Order (QCO) for one extra year.
SGCCI discussed how Indian companies engaged in heavy industrial manufacturing, such as L&T, Kirloskar and Bharat Forge, can expand their R&D infrastructure to partner with existing textile companies to co-develop machinery using technological advancements in the sector. A central task force was also recommended, consisting of all industry associations, semiconductor equipment manufacturers and IT manufacturers to share policy and innovation.
Other recommendations also included the rationalisation of GST on textile machinery of no more than 12% and assessing government investments based on actual reductions in importation.
The recommendations seek to create strong ecosystem for manufacturing of textile machinery which would be in line with broader national aim of industrial self-sufficiency.
