'New textile policy will be simplified'

11 Mar '16

2 min read

The government's new textile policy will be a simplified one, according to Textiles Secretary Rashmi Verma.

She told The Hindu that the new policy is aimed at increasing the production and productivity of textile sector, generating more employment, bringing down the cost of production, penetrating newer markets, and introducing more value added products and focusing both on exports and domestic markets.

The Textiles Ministry was also seeking some relaxation in labour laws such as allowing women to work at night, she said.

“Currently, we are having discussions with the Labour Ministry. Tamil Nadu has already done it. We also want modification in contract laws,” Verma said.

According to the Textiles Secretary, the growth of textile sector was limited due to factors such as high cost of production, sudden spurt in interest rates on working capital and increase in labour wages.

She said the Textiles Ministry has held discussions with the Finance Ministry to offer some tax incentives to the weavers to make the sector attractive.

This also included tax holidays and interest subvention among others. She said a meeting of all stakeholders would be held next month to take stock of the current export situation given that exports from India would become unviable after 2017 as New Delhi was a signatory to WTO guidelines.

The Ministry would also review which were the subsidies and concessions that could be continued or phased out.

“Most of the incentives or subsidies given by the Ministry are production related. Those related to processing and skilling would be continued,” she said. (SH)

Fibre2Fashion News Desk – India

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