Textiles, clothing exports jump 11% in July on govt policies, falling rupee

download (1).jpgSource: Business Standard, Aug 25, 2018

After a staggering 17 per cent decline in the April–June quarter, India’s textiles and clothing exports revived to witness a jump of 11 per cent in July due to favourable government policies and rupee depreciation.

Data compiled by the DGCIS under the Union Ministry of Commerce showed total textiles and apparel exports at Rs 196.36 billion ($ 2.86 billion) for July 2018 compared to Rs 176.92 billion ($2.74 billion) for the corresponding month last year. Total textiles exports witnessed a jump of 15 per cent to Rs 108.79 billion ($1.58 billion) for July 2018 versus Rs 94.29 billion ($ 1.46 billion) in the comparable month of previous year. Moving in tandem, India’s apparel exports recorded a jump of 6 per cent to Rs 87.57 billion ($1.27 billion) for July 2018 as against Rs 82.63 billion ($1.28 billion) for the same month last year.

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Special Package to Boost Export of Textiles

downloadSource: IBEF.org, Aug 03, 2018

New Delhi: India has the potential to become one stop sourcing destination for brands and retailers from ASEAN. There are opportunities for textile manufacturers from ASEAN to invest here and cater to domestic market as well as exports because of competitive advantages available in India including availability of raw material, trained man-power and presence of the entire textile value chain. Further, 100% FDI is allowed in the textile sector under automatic route.

To increase exports of textile and apparel, Government has announced a Special Package for garments and made-ups sectors. The package offers labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS), enhanced duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act. Further, the rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel and made-ups from 1st November 2017.

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Incentive package for garments helped increase exports

download (6).jpgSource: The Hindu Business Line, Jan 29, 2018

New Delhi: Export incentive packages announced by the government to support vulnerable sectors do have a positive impact on performance of some categories, the Economic Survey has highlighted.

A case study of the ₹6,000-crore export package announced for the apparel sector by the government in June 2016 published in the Survey shows that the growth in clothing exports (manmade fibre) compared to other labour-intensive and manufacturing goods, which did not receive the incentives, was much higher.

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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: 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.