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FICCI submits agenda for textiles industry to Mr Dayanidhi Maran

17 Jun '09
4 min read

• Address inverted duty structure in man-made fibres - CENVAT on raw material like MEG and Caprolactam are 8 and 10% respectively.
• Introduce DEPB/Drawback Rates for technical textiles non-woven products.
• Ensure speedy clearance of funds under TUFS.
• Implement GST at the earliest.
• Suitable changes in labour laws
- Extension of working hours
- Keep units employing upto 1000 people outside the purview of Industrial Dispute Act
• Incentivizing exports to non-traditional markets and also to ensure effective market access for textiles and garments under the FTA
• Comprehensive Fibre Policy
• Encouraging FDI in the sector

FICCI noted that while India's exports of textiles and apparels to US declined by 14% during January-April 2009, but those of Bangladesh and Vietnam increased by 12% and 5.2% respectively in the same period. Today, Vietnam's and Bangladesh's share in US apparel market is more than that of India.

While India's share in US Apparel market is 5.7%, but that of Vietnam and Bangladesh stands at 8% and 6.1%, observed FICCI. Of course, China's share remains much higher (32.4%) despite slowdown. Also, FICCI pointed-out that production in textiles and apparel sector fell by 1.2% in 2008-09 as compared to growth of 11% and 6% in 2006-07 and 2007-08 respectively.

FICCI also suggested certain changes in labour laws especially for textiles and apparel sector to incentivize large scale production in the country and also to make sector more competitive. Under Industrial Disputes Act, FICCI suggested that all units employing up to 1000 people should be exempted (currently units employing up to 100 people are exempted). This would encourage the investors to establish large scale factories and achieve economies of scale, as long as they are outside the purview of Industrial Disputes Act.

Other Members in FICCI delegation who met the Minister were Mr Shishir Jaipuria, Managing Director, Ginni Filaments and Chairman FICCI Committee on Textiles and Taskforce on Technical Textiles, Mr G S Madan, Co-Chairman, FICCI Apparels Committee and Dr Amit Mitra, Secretary General, FICCI.

Federation of Indian Chambers of Commerce and Industry

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