Rs 6,000-cr push for textile sector

Tribune News Service

New Delhi, June 22

The Union Cabinet today approved a Rs 6,000-crore special package for employment generation and promotion of exports in the textile and apparel sector. The move is likely to create one crore jobs in three years.

The government said the package included a slew of labour-friendly measures that would promote employment generation, economies of scale and boost exports.

The steps will lead to a cumulative increase of $30 billion in exports and investment of Rs 74,000 crore over the next 3 years.

“We will overtake Vietnam and Bangladesh in garment exports in the next three years, if we properly implement the package,” Textiles Secretary Rashmi Verma said.

The majority of new jobs are likely to go to women since the garment industry employs around 70 per cent women workforce.

The package provides for enhanced duty drawback coverage and a new scheme will be introduced to refund the state levies that were not refunded so far. This move is expected to cost the exchequer Rs 5,500 crore, but will greatly boost the competitiveness of Indian exports in foreign markets.

Shishir Jaipuria, Chairman, FICCI Textiles Committee, said the proposal to provide flexibility to the garment industry, which is seasonal in nature, under various labour laws would help the industry meet orders and be competitive, too. 

Jaipuria said the Indian textiles and garment industry was facing tough competition and the refund of state levies would help it gain more competitiveness in global markets where India had to compete with players from other countries that have duty-free regimes.