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

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Giorgio Mantovani
Corman S.p.A

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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