Home / Knowledge / News / Textiles / FICCI seeks special package for textile industry
FICCI seeks special package for textile industry
10
Nov '08
Expressing deep concern over the steep decline in the profitability and investment in the Indian textile industry, FICCI has immediately sought a 'SPECIAL TEXTILES PACKAGE' for the industry to face the current economic crisis.

FICCI noted that profitability of Indian textile industry fell by over 99% in June 2008 quarter and investment in the current year (for April-July) has been less than one third of last year for the same period.

FICCI also said that competing countries are also bailing-out their textiles industry in the midst of these crises and in fact Pakistan Government has only last week approved the incentive package for its textile industry.

Under 'Special Textiles Package' FICCI has demanded, among other things, Moratorium for one year on term loans for textile industry; Increased drawback rates; Export credit at international rates; Extension of Sunset Clause for EOUs for 5 years; Release of Pending Funds of last year under TUFS; Reduction of Excise duty on man-made fibres; 10% Import duty on Man-made fibres; and 7% Duty Free Scrips as a refund of State taxes.

FICCI emphasised that unless these steps/measures are implemented swiftly to bail-out the Indian textiles industry, these is a risk of large scale lay-offs in the industry.

Pointing out the employment intensive nature of the industry, FICCI said that for every 1 unit of capital in textiles industry 7 people are employed whereas, in case of steel and auto sector only 1 and 2 people are employed respectively for every unit of capital. So diminishing investment in the textile sector could have significant impact on the employment front.

FICCI said that under the 'Special Package' Government should provide a moratorium of one year for repayment of principal amount of term loans taken by textile industry. For this there is no need for brining any change in the Act or rules by RBI and financial institutions only need to be advised to restructure their loan portfolios accordingly.

Further, FICCI noted that Drawback rates have been reduced by 1 to 3% for textile products with effect from 1st September 2008. Whereas, the input cost for the industry has substantially gone up in the last few months.

Therefore, FICCI said that these drawback rates need to be increased to their levels that were existing prior to 1st September 2008.

The Chamber also demanded that Sunset Clause for EOUs should be extended for another 5 years at least. Under this Clause, EOUs are entitled for income tax exemptions under Section 10 B of Income Tax Act for a period of 10 years that is expiring by March 2009.

Given the profitability position of textile industry currently, it would not be appropriate to withdraw this benefit next year as a result of which tax for EOUs would be around 34% after March 2009, FICCI pointed-out. Also, Indian textile exporters need to get export credit at international rates as is the case incompeting countries.


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Thrace-LINQ expanding Dorchester County operations

Thrace-LINQ, a global supplier of fabrics for the textile industry,...

Courtesy: Levis

Fashion | On 26th Sep 2017

Google unveils smart denim jacket with Levi Strauss

Ending the months-long wait, Google has unveiled its smart denim...

Interviews View All

Frank Gossmann
Rotorcraft AG

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

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Top executives
Textile industry, India

The event should be organised every year

Steve Cole
Xerium Technologies

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Divvya and Nidhhi Gambhir
Walnut

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

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
75.5%
No
12.2%
Skip
12.2%

Total Votes: 49

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
63.3%
No
24.5%
Skip
12.2%

Total Votes: 49

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
87.8%
No
6.1%
Skip
6.1%

Total Votes: 49

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
71.4%
No
10.2%
Skip
18.4%

Total Votes: 49


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