Welcoming the Special Package of the Central Government for the textile and apparel sector of the country, the industry stalwarts see it as an important, bold, and very well-timed decision… Arvind Subramaniam, Chief Economic Advisor to Government of India and Textiles Secretary Rashmi Verma, has said that the policy will be WTO-compatible since state taxes embedded in exports can be as high as 5 per cent of the total value. While Rashmi Verma is of the opinion that most of the incentives in the package are mostly for the garment sector, and other organized sectors of the country. She also added that the Textile Policy, which is likely to be out in next one month, will be focusing on unorganized sectors also. A great stress will also be laid on technical textiles and man-made fibre sectors.
Also Read – Cabinet approves Special Package for T&C industry
Hailing the package, A Sakthivel, President, Tirupur Exporters’ Association (TEA) said that India would be able to regain its position in apparel exports within three years with the policy support. S C Ralhan, President of Exporters’ body FIEO said the rebate on state taxes through duty drawback route and grants of duty drawback in case of fabric import under advance authorization, would add to cost competitiveness of exports. Indian Texpreneurs Federation Secretary, Prabhu Damodharan also appreciated Government’s understanding about the importance of textiles sector in the country’s economy and its potential in exports, and therefore fixing a set target to regain No. 1 position by 2018 with competing textile manufacturing nations like Bangladesh and Vietnam.
Elated Ashok G Rajani, Chairman, AEPC said, “This very a comprehensive package that has not only addressed the industry’s needs, but also the employment generation need of the country that this sector can address. The cost differential that India suffers vis-à-vis our competing countries has been duly addressed. The refund of employer’s contribution in EPF, Additional incentives under ATUFS, enhanced duty drawback coverage with drawback for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme, etc., are the support systems that will help the industry gain cost competitiveness.”
Not only the apparel sector, even the textile mills sector is also content with this package as M. Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has said that though there is no direct benefit of the package to the mill sector but with the increase in garment production would require more fabric and yarn and therefore, the domestic yarn demand will pick up in the long run. Currently, the textile sector or the mill sector is suffering with surplus production capacity. Increased demand would thus solve the problem.
“We hope once the positive results are out, Government will ex
tend it to the entire value chain of textiles as the sector has huge potential for job creation,” said Binoy Job, Secretary General, Confederation of Indian Textile Industry (CITI). B K Goenka, Chairman, Welspun Group and Co-Chairman CII National Committee on Textiles, said the proposed flexible labour reforms will further help achieve scale in the apparel sector.
Shishir Jaipuria, Chairman, Federation of Indian Chambers of Commerce and Industry (FICCI) Textiles Committee commented that this is timely and would provide a much needed impetus to the value addition and employment in the country. The proposal to provide flexibility to the garment industry which is seasonal in nature, under various labour laws, would help the industry to meet their orders timely and be competitive too. This would attract large investments and create more job opportunities especially for the women in the sector.
