The Indian textile and clothing industry have proposed 7 short-term policy measures to the Government.
In all probability, this is the first time ever in the history of Indian textile and clothing industry that 9 major associations and EPCs have come together and collectively met different ministers with the intent to revive the industry.
Under the banner of National Committee on Textiles and Clothing, the top brass of the industry recently met the Textile Minister, the Finance Minister and the Minister of Commerce, Industry and Railways, and handed over joint memorandum to them. Team Apparel Resources has seen a copy of the joint memorandum.
Experts feel that manufacturing in textile and apparel industry will get the much-needed boost as all three ministries seem to be supporting these demands.
“Our meetings with all 3 ministers were quite positive as they gave us enough time and discussed things in detail. We are hopeful that these suggestions will be accepted. And if it happens, the entire supply chain of textile industry will get a big relief,” told a senior official of a trade body who was instrumental in the finalisation of this joint memorandum, on the condition of anonymity. According to the Government sources, it may take few months to come up something concrete on this as all the 3 ministries need to coordinate on this.
One of the most important points in this regard is the need to extend export benefits to the entire textile value chain; as due to various reasons, cotton and MMF sectors are exporting taxes which is reducing the cost competitiveness of Indian exporters and thus India is losing its share to the competitors.
Regarding India’s increasing apparel import from Bangladesh, it says, “It is essential to impose necessary safeguard measures such as Rule of Origin, Yarn & Fabric Forward Rule to prevent the cheaper imports that greatly affect the domestic manufacturing sectors resulting in job losses for several lakhs of people and also affecting the financial viability of such units.”
The memorandum also suggests 4 points for ease of doing business, which includes the covering obligation period under the EPCG scheme that may be restructured accordingly, in addition to instructing the Authorised Dealer (AD) Banks to rationalise and ease the procedural issues by accepting the exporters’ declaration in order to receive smooth export realisation from third party for exports.
It also insisted that regarding RCEP negotiations, textiles and clothing items must be kept in D Category for 20 years and certain sensitive items under the exclusion list.
Here is the list of 7 suggestions/demands of the prominent associations
Extend the benefits of enhanced MEIS & RoSTCL till RoDTEP comes into force.
Extend the remission of duties and taxes under the proposed RoDTEP scheme for the entire textile value chain,namelyall fibres, yarns, fabrics, madeups, garments and all types of technical textiles.
Extend 5per centinterest subvention for all textiles and clothing exports including all types of spun yarns.
Consider including anti-dumping duty in the duty drawback calculation and enhance the rates appropriately.
Impose adequate safeguard measures to prevent cheaper imports of readymade garments and used cloths.
At present,either 80JJAA income tax or enhanced Employee Provident Fund (EPF) benefits extended for the new jobs created by garmenting/made-ups units. Extend both the benefits as already announced under SPELSGU.
Any policy should have a tenure of 3 to 5 years to enable ease of doing business to facilitate the industry to achieve a sustained growth rate.