Port Wings News Network:
To increase exports of textile and apparel, Government has announced a Special Package for garments and made-ups sectors, Minister of State of Textiles, Ajay Tamta, informed the Lok Sabha in a written reply on 2 August.
According to him, 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.
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.
Products such as fibre, yarn and fabric in the textile value chain are being strengthened and made competitive through various schemes like Powertex for fabric segment, ATUFS for all segments except spinning and Scheme for Integrated Textile Parks (SITP) for all segments. Government is also providing interest rate subvention for pre and post shipment credit for the textile sector and gives assistance to exporters under Market Access Initiative (MAI) Scheme.
Further, following steps are being taken by the Government for promoting the export of Handloom and Handicrafts: -Assistance for marketing study, branding, participation in Fairs and Exhibitions, Buyer-Seller Meets in India and abroad etc. through Marketing and other Schemes, setting up of 8 mega clusters in the country for increasing manufacturing and exports, providing skill upgradation training to artisans and carpet weavers, refunding excise and customs duties for importing inputs through Duty Drawback channel, Providing assistance for manufacturing new and Innovative designs as per need, and Providing modern and improved tools to improve the production technique of artisans.