Textile infrastructure gets Budget push by increasing allocation for building textile parks

Source: ETRetail.com, Feb 05, 2017

NEW DELHI: In line with Prime Minister Narendra Modi’s vision to increase output and jobs in the textile sector, the Budget has given a major boost to textile infrastructure by increasing the allocation for building textile parks, incubation facilities, processing and development centres by almost three times.

The provision for textile infrastructure has been increased to Rs 1,860 crore in 2017-18 from Rs 506 crore in FY17.

These increased funds will also be used for the Pradhan Mantri Rojgar Protsahan Yojana to promote employment in the sector.

Infrastructure is the only segment of the total textile industry which has got higher funds. Allocation for the ministry is similar to last year.

“Though there are no new schemes or programmes specifically for the textiles or garment industry, the Budget has several provisions that will help the sector to grow faster,” said Rahul Mehta, President, Clothing Manufacturers’ Association of India.

However, the government has cut down the support to the Amended Technology Upgradation Fund Scheme (ATUFS) which is used to promote technical textiles and generate employment in the apparel and garment sectors. The budgetary allocation is down from Rs 2,610 crore in FY17 to Rs 2,013 crore now.

“The allocation for the textile industry used to go for TUFS but the industry felt that besides modernization, more is needed in infrastructure such as plug and play facilities. So, the allocation is in the right direction as will improve the investment climate in textile parks,” said an industry expert.

The largest chunk of the spend, Rs 1600 crore is expected from the remission of state taxes which will make garment exports competitive.

By creating more incubation centres, the government has encouraged domestic textile manufacturing which has lost market share to Bangladesh and Vietnam.

Higher infra spend will help create the logistics required for the Rs 6,006 crore package for apparels announced last year.

Bizarre garment rules tie down textiles companies

Source: ETRetail.com, Dec 19, 2016

NEW DELHI: Did you know that your shirt may be among several products that mandatorily need a date of manufacturing? And till a few years ago, some shirts also had to mention the date of expiry to avoid “visits“ by “inspectors“.

The country’s archaic and often bizarre rules for garment manufacturers and retailers meant that the last vestiges of `Inspector Raj’ continued for this crucial sector. Most of them, including some of the biggest names in the industry , have been grappling with laws that treat clothes in the same way that inspectors deal with packaged atta or sugar.

There are several examples to show how bizarre the rules are. In a metropolitan city , inspectors from the state’s weight and measures department issued a notice to the directors of a leading garment brand as the tag did not mention the measurement in metres.

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Cabinet clears easier labour laws, tech upgradation for textiles sector

Source: The Economic Times, Dec 08, 2016

NEW DELHI: The Union Cabinet on Wednesday approved a set of reforms, including simplified labour laws and technology upgradation for the made-ups sector. “The interventions are expected to boost employment in the textiles sector and create jobs for up to 11 lakh persons, lead to increase in exports and enhance benefits to the workers in the textiles and apparel sector,” said an official release.

Made-ups, which includes products like towels and bedsheets, is the second largest employer in the textiles sector after apparel. The government will provide production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for made-ups similar to what is provided to garments based on additional production and employment after three years.

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Govt considers providing tax benefits, marketing support for powerloom sector

index.jpgSource: The Economic Times, Nov 15, 2016

NEW DELHI: A mega package for the powerloom sector is in the works, focused on upgrading units. The package will include social welfare schemes, insurance cover and cluster development of power looms.

This would be the second in a series of incentives for the textile sector, after a Rs 6,500 crore package announced for garments in June. At present, less than 2 lakh power looms of the total 25 lakh are technologically upgraded.
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Government plans overseas roadshows to boost textile exports

Source: The Economic Times, Oct 23, 2016

NEW DELHI: Government plans to conduct roadshows to promote the country’s textiles in non-traditional markets like Russia, South America and select countries in West Asia, at a time when shipments from the sector have been declining.

Textile exports from India remained flat in 2015-16 at $40 billion as compared to $41.4 billion in the previous year.

Moreover, Indian textile and apparel exports have been losing their competitive edge to countries like Bangladesh and Vietnam in recent years.

“We are eyeing non traditional markets like Russia, South America and some countries in West Asia which are relatively free from turmoil like Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. We will hold roadshows to showcase Indian textiles in these markets,” a senior official told PTI.

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India plans roadshows for promoting textile exports to new markets

Source: The Economic Times, Oct. 12, 2016

NEW DELHI: Plummeting textile exports have prompted India to look outside traditional markets and tap the ones being served by competitors such as China. The textiles ministry is planning to do aroadshows to promote Indian textiles in the new markets, officials said.

“We used to hold roadshows earlier and we want to approach new markets through these. We have identified Russia, South America and West Asia to boost exports,” said one of the officials, who did not wish to be named. Read the rest of this entry »

India explores Iran market for textiles exports

Source: Business Standard, Jul 06, 2016

Mumbai: In an attempt to reduce dependence on the European Union and United States for growth, Indian garment exporters are exploring opportunities in Iran.

A delegation led by the Ministry of Commerce and accompanied by over half a dozen industry officials recently met with their counterparts there. The Indian delegation discussed a host of issues including prevailing taxes and relaxation in policy support for hassle-free export of textiles to Iran.

“Although the United States and the European Union are important markets for us, we are exploring new markets for textiles exports to reduce our dependence on these two regions,” said Rashmi Verma, Secretary, Ministry of Textiles, on the sidelines of an event in Mumbai.

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