Interviews
Textiles & garments sector need more fiscal incentives, ASSOCHAM
10 Mar '09
4 min read
ASSOCHAM demands that the government should draft a 5 year targeted agenda and work jointly with industry and labour unions to refine the stringent labour laws in a phased approach towards the integrated development of industry and work force.
Vocational training institutes should be developed in the rural and sub-urban areas by the government to provide the working knowledge of textile designing, weaving and spinning through short term courses, as the sector witness lack of skilled manpower, suggests ASSOCHAM.
The high cost of credit is forcing textile companies to postpone their expansion and modernization plans as they are unable to pass the cost to the customers, said ASSOCHAM.
ASSOCHAM also suggests that interest subvention scheme for the textile sector needs to be continued up to March 2010 without any changes. As per the scheme, the exporters are compensated for reduced profits.
The Asian counterparts including China and Pakistan are offering fiscal and monetary assistance to the sector, like China has increased the rates of VAT refund from 9 per cent to 14 per cent for synthetic textile products, ASSOCHAM, feels that the Indian government also needs to provide R&D, fiscal and monetary assistance to the sector.
The textile units across states of Maharashtra, Andhra Pradesh, Tamil Nadu and Kerela are facing power supply crisis with interrupted and low quality electricity with costlier supply. ASSOCHAM suggests state governments to support the sector by providing power at subsidized rates.
Vocational training institutes should be developed in the rural and sub-urban areas by the government to provide the working knowledge of textile designing, weaving and spinning through short term courses, as the sector witness lack of skilled manpower, suggests ASSOCHAM.
The high cost of credit is forcing textile companies to postpone their expansion and modernization plans as they are unable to pass the cost to the customers, said ASSOCHAM.
ASSOCHAM also suggests that interest subvention scheme for the textile sector needs to be continued up to March 2010 without any changes. As per the scheme, the exporters are compensated for reduced profits.
The Asian counterparts including China and Pakistan are offering fiscal and monetary assistance to the sector, like China has increased the rates of VAT refund from 9 per cent to 14 per cent for synthetic textile products, ASSOCHAM, feels that the Indian government also needs to provide R&D, fiscal and monetary assistance to the sector.
The textile units across states of Maharashtra, Andhra Pradesh, Tamil Nadu and Kerela are facing power supply crisis with interrupted and low quality electricity with costlier supply. ASSOCHAM suggests state governments to support the sector by providing power at subsidized rates.
Associated Chambers of Commerce and Industry of India (ASSOCHAM)
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
