The textile sector accounts for nearly 14% of the total industrial output and about 30% of the total exports, whereas the apparel industry in the biggest sector in foreign earnings sharing 12% of the country’s export total. In spite of this not much activity appears to be in effect from the Government’s side on strengthening the industry’s position. The first thing in demand by the industry would be to lift the indefinite abeyance on the fresh sanction of term loans under TUFS by banks, immediately and need security on it along with pumping of fresh investments in the sector. Secondly the country’s trade deficit is projected to touch a record US$ 135 billion this fiscal year and this widening trend is a macro economic concern for the country. Promoting exports is the need of the hour to beat this trend.More...
The textile sector accounts for nearly 14% of the total industrial output and about 30% of the total exports, whereas the apparel industry in the biggest sector in foreign earnings sharing 12% of the country’s export total.
ReplyDeleteIn spite of this not much activity appears to be in effect from the Government’s side on strengthening the industry’s position.
The first thing in demand by the industry would be to lift the indefinite abeyance on the fresh sanction of term loans under TUFS by banks, immediately and need security on it along with pumping of fresh investments in the sector.
Secondly the country’s trade deficit is projected to touch a record US$ 135 billion this fiscal year and this widening trend is a macro economic concern for the country. Promoting exports is the need of the hour to beat this trend.
Textiles and apparels being the biggest revenue gainers in terms of foreign exchange for India and covering approx. 22 percent of the global market, the government should promote exports by re-introduction of beneficial schemes like Section 80 HHC of the Income Tax Act which exempted income from exports earlier.
Secondly, the interest subvention which is granted on packing credit should be continued with, currently which, the Apex Bank is proposing to discontinue on the grounds that the rupee has depreciated in recent times.
Also, the government should protect the flourishing textile and apparel industry by curbing cheaper import from countries like China & Bangladesh by adopting measures which would further discourage such imports.
Similarly, adequate measures are required to be initiated by the government in boosting the cost competitiveness of Indian products in the US & EU markets over their Asian counterparts by offering suitable incentives and policies. Also, restructuring in the rigid labor laws and labor costs which form the single largest cost component for an Indian apparel manufacturer would be a boon for the industry.
By
Mr. Manish Mandhana – Jt. MD – Mandhana Industries Ltd.