Govt support for R&D likely to get extended for another year

10 Jun '08

2 min read

A proposal has been made for the upcoming budget which encloses that the research and development support given to the textile sector, will be extended for another year.

However, this time it should be granted to enterprises depending on their export volume rather than a fixed percentage which is being given to various categories.

This proposal was formulated with the hope that it would motivate exporters to essay for higher volume of exports in order to get aid for research and development (R&D). In fact this would also create a competitive environment whereby each enterprise would strive for a better outcome and indirectly contribute to increasing the overall economic revenue of the country.

However, contradicting this proposition are textile exporters who believe that this new formula if adopted in the budget would be extremely discriminatory since it would only promote big export houses which are likely to benefit the most as they get higher orders.

On the other hand, small and medium sized exporters would be the worst affected because it will be impossible for them to match the volume of large exporters-cum-manufacturers. Besides, they were quite content with the present system and do not understand the need to have a new scheme for R&D.

Official sources from Trade Development Authority of Pakistan told Fibre2fashion that as of now, it was only a proposal which has been sent forward to the Ministry of Pakistan by some particular set of associations. It is only up to the ministry to decide whether or not should the proposal get incorporated in the budget. According to estimates, some 15 – 16 kinds of associations in textile and other sectors are likely to benefit from this policy.”

Fibre2fashion News Desk - India

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