Special package to be extended for home textile segment: Textile Ministry

Smriti Irani appreciated the industry's efforts to remain leading exporter and assured all help to it from her Ministry.

By: PTI | Mumbai | Published:October 21, 2016 11:57 pm
Smriti Irani, Irani, Textile industry, home textile, textile sector, Textile Ministry, special package, business news, latest news, Indian express Textiles Minister Smriti Irani. (Source: PTI)

The made-ups and home textile segment is expected to be covered under the Rs 6,000-crore special package recently approved for the garment sector. Union Minister of Textiles Smriti Irani Friday told the industry her Ministry is actively considering to extend the benefits of special package to the made-ups and home textile segment, which had been excluded from its ambit. “The Ministry is actively considering to extend the special package recently approved for the garment sector to be made-ups and home textile. An announcement for the same is likely to be made around Diwali,” Irani said in her address after presenting Texprocil Awards here.

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The made-ups and home textile segment is equally, if not more labour intensive than the apparel sector, and has the capability of generating sizeable new employment. At the same time it will act as a pull factor for increased consumption of fiber, yarns and fabric produced domestically, she said.

Irani appreciated the industry’s efforts to remain leading exporter and assured all help to it from her Ministry.

She said Prime Minister Narendra Modi has a vision of doubling the income of farmers by 2022. “We are happy the farm yield has already increased and the country hopes to become a leading producer of cotton.

Earlier, R K Dalmia, Chairman, The Cotton Textiles Export Promotion Council (Texprocil), said the special package of Rs 6,000 crore for the apparel sector is a step in the right direction given the current scenario of world trade and international competitiveness.

The reimbursements of State and Central levies along with labour reforms will strengthen the textile sector by improving its cost competitiveness in the global market, he said.

Considering that textile is a low margin industry, introduction of such packages can lead to an exponential leap in export performance. This can be seen from the fact that in September 2016 export of garments showed a 12 per cent growth amid a downward trend in most other sectors, Dalmia said.

He said the Government needs to move with vigour to expedite the negotiation of Free Trade Agreements with EU, Australia and Canada. “We are glad the Ministry is already reviewing the various FTAs that India has signed so far, as it will enable India to be on a level playing field with other competitors in different markets.”

High and discriminatory import duties on textiles sourced from India in major markets like China and Turkey also pose a challenge, Dalmia said.

The hardening of cotton prices in the last few months is a matter of concern for the textile industry. It is necessary that a policy framework be put in place so that Indian manufacturers get raw materials at international prices or below at all times, he said.