SIMA urges Centre to frame comprehensive textile policy

03 Jun '14

2 min read

The Southern India Mills’ Association (SIMA) has urged the newly-elected Indian Government to come up with a comprehensive textile policy to spur growth, according to a Times of India report.

SIMA chairman T Rajkumar has requested Prime Minister Narendra Modi to review the draft recommendations made by the Ajay Shankar committee and announce a new integrated textile policy as soon as possible.

He suggested that a cotton stabilization scheme comprising seven percent interest subvention would help the growth of the cotton textile industry in Tamil Nadu, which accounts for over 40 percent of India’s spinning capacity.

He also suggested increasing credit limit from three months to eight months and also reduction of margin money from 25 percent to 10 percent so that the farmers get better price for their produce.

The early implementation of the country-wide Goods and Services Tax (GST) would also help the industry, according to SIMA.

The association also recommended that the Indian Government should conclude a free trade agreement (FTA) with the European Union.

The SIMA chairman also drew attention to the favourable textile policies put in place by Gujarat and Maharashtra governments and requested Tamil Nadu Chief Minister Jayalalithaa to announce a unique textile policy to enable the state’s industry to compete with those states.

Mr. Rajkumar urged the state government to frame an effective policy for attracting large-scale investments in shuttle-less looms, weaving and modern textile processing facilities.

Fibre2fashion News Desk - India

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