Govt clears Rs 1,300-cr skill dev scheme for textile sector

Source: Business Standard, Dec 21, 2017

New Delhi: The Union Cabinet today approved a new skill development scheme having an outlay of Rs 1,300 crore with an aim to create jobs in the organised textile and related sectors.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here. Read the rest of this entry »


With garment exports in tatters, govt steps in with higher incentives

Source: The Hindu Business Line, Nov 23, 2017

New Delhi: India’s apparel sector, which has witnessed a sharp fall in exports in the ongoing fiscal, is in for some immediate relief. The government will soon double the incentive for garment exporters under the Merchandise Export from India Scheme (MEIS).

A announcement raising incentives under MEIS from the current 2 per cent to 4 per cent is expected soon, sources said. In fact, Commerce & Industry Minister Suresh Prabhu also told BusinessLine that “some action is expected soon”.

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Govt sets institutional mechanisms to tap full potential of textile sector

download (4)Source: Business Standard, Aug 10, 2017

New Delhi: The government said it has set up institutional mechanisms including a task force, an inter-ministerial synergy group and a steering committee to realise the full potential of textile sector.

The inter-ministerial synergy group on man-made fibre (MMF) chaired by the textiles secretary will formulate policy interventions to enhance the growth and competitiveness of MMF industry in the country.

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

Source:, 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:, 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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