Home / Knowledge / News / Apparel/Garments / Package has huge potential: Indian apparel sector
Package has huge potential: Indian apparel sector
19
Jul '16
Stalwarts from the Indian apparel sector, who spoke to Fibre2Fashion, were unanimous in their opinion that the recently announced special package for the apparel sector, has huge potential for the industry, and will create millions of jobs and also increase exports.
 
The Union Government had earlier last month approved a Rs 6,000 crore special package and new policies for the apparel sector, with a target to attract investments of $11 billion, create 10 million new jobs and generate $30 billion in exports, all in three years.
 
The announced measures include long pending demands of the industry like flexibility in labour laws, additional incentives for duty drawback scheme as well as tax and production incentives for job creation in garment manufacturing.
 
One path breaking initiative is the measure to usher in flexibility in labour laws, which includes introduction of fixed term employment looking at the seasonal nature of the garment sector. However, a fixed term worker will be considered at par with permanent workers in terms of working hours, wages and other statutory dues.
 
Speaking about the package, Sudhir Dhingra, CMD at Orient Craft told Fibre2Fashion, “The Rs 6,000 crore apparel package from the government is an important and positive move and has come at the right time. Our challenge has always been to cut costs as we are less competitive than many other countries like Cambodia, Bangladesh, Vietnam, etc.”
 
“The flexible labour policy will now help us to hire people for shorter durations, which will increase our competitiveness and help us compete more strongly with other countries, by offering better prices, which in turn can also help the country export more garments,” he added.
 
Premal Udani, chairman, Kaytee Corporation, was more upbeat about the duty drawback scheme. He said, “From the export perspective, the industry used to always feel that the state taxes and levies were not refundable by the drawback rules, so to a certain extent, we ended up exporting our taxes. But this policy clearly states that there will be refund of state levies and taxes, which is an extremely welcome step.”
 
“For the fabrics that we import under advance licence, duty drawbacks are not given, including for the accessories, cartons, etc which are sourced from the domestic markets. However, the government has now decided to refund for whatever components are sourced from the domestic market on which local duties have been paid. All these are very positive steps and now the government is very clear in its thinking that we should be exporting garments and not our taxes,” he explained.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search