Special Package for Textile Sector will boost exports, create employment and attract FDI: FIEO

New Delhi/Ludhiana, June 22, 2016: Commenting on the special package for the textile sector, Mr S C Ralhan, President, FIEO said that the package meets some of the outstanding demand of the sector and will impart competitiveness to textile exports from the country. The rebate on state taxes through duty drawback route and grant of duty drawback in case of import of fabric under Advance Authorization would add to cost competitiveness of exports. The 10% additional TUFS subsidy for the garment sector based on additional production and employment will encourage the garment sector to modernize and augment production besides creating additional employment opportunity. The relaxation in minimum number of days requirement under Section 80JJA from 240 days to 150 days will specifically benefit the textile exporters who at times are required to engage labour to meet the seasonal demands. The exemption from employees’ contribution to those drawing wages upto Rs.15000 and contribution by the Government in lieu of Employer will facilitate bringing workers from informal sector into a formal sector thereby entitling them for the various benefits extended by the Government aimed at labour welfare, said President, FIEO.

The textile exports have marginally declined in 2015-16 recording a total export of USD 36.26 billion as against USD 37.14 billion recorded in 2014-15.

FIEO Chief said that the special package for textile and apparel sectors should be supplemented by the new Textile Policy to provide a long term vision and long term goal for the textile industry so as to gear itself to meet the challenges from South Asian and South East Asian countries.