Indian Textile Ministry awaits Finance Ministry’s nod for a Rs. 170 crores Special Package for employment-intensive knitwear sector. Once cleared, the initiative is expected to boost the knitwear industry to a great extent which mainly comprises small and medium level enterprises.
The Textile Ministry intends to make the knitwear industry even more competitive. The proposed increase in investment will result in job creation. Exporters too feel that the package can ease the pain, especially after the Goods and Services Tax (GST) rollout.
The officials see no hurdle in getting clearance from the Finance Ministry as the package of less than Rs. 200 crores do not require Cabinet’s approval.
The Government is intended to create one crore jobs in the textile and apparel industry over next three years after it announced several reforms for the industry.
Similar plans for apparel and made-ups have already been implemented by the Textile Ministry.
Central Government last year announced an increase in MEIS (Merchandise Exports from India Scheme) rates for readymade garments and made-ups from 2 per cent to 4 per cent. Several trade bodies including Tirupur Exporters Association (TEA), a trade body in the knitwear capital of India, had then welcomed the move.
