Incentives for tapping newer markets in T&C sector on anvil
Mr. Dayanidhi Maran, Union Minister of Textiles, said that the Government would extend a helping hand to the industry to seek opportunities in the new markets to reduce their dependence on traditional markets like the US and Europe. That will also help the industry to withstand the competition from neighboring countries and overcome protectionist measures being adopted by developed countries.
The Minister was addressing the textile industrialists in the country today in New Delhi at meeting was organized jointly by CITI, TEXPROCIL, AEPC and SRTEPC. “There is a need to diversify textile and clothing exports to new markets like Gulf Cooperation Countries (GCC), namely Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and UAE, Latin America, Russia and Oceania,” he added. He also mentioned that the export markets in the US and Europe are showing signs of recovery.
Mr. Maran disclosed that the Government would take steps in the short, medium and long terms to provide relief to the industry. As a part of the short term strategy, the Government would strive to rationalize fiscal structure, exempt service tax, reduce interest rates on pre and post shipment credit and facilitate faster clearance of arrears of terminal excise duties and Central sales tax. The medium strategy envisages the inducting momentum to the implementation of Technology Upgradation Fund Scheme, Scheme for Integrated Textile Parks and Technology Mission in 11th Five Year Plan period. In the long run, there is a need for improvement in the infrastructure, labor law reforms and to create a new business orientation by the industry in line with the global trends.
The Textile Minister said that his ministry would initiate consultation process immediately with the stakeholders to form a National Fibre Policy. He called upon the industry to give inputs to frame the policy. “I humbly request industry to come forward and let there be a single forum representing the wide spectrum of textiles interest. Time is essence and let us move forward,” he added. The Minister also opined that the domestic consumption of T&C sector has been adversely affected and the Government is looking ways and means of increasing the demand.
Earlier the Minister released a study commissioned by the industry associations – CITI, TEXPROCIL, AEPC and SRTEPC- and undertaken by ICRA Management Consulting Services (IMaCS). (Highlights of the study is being separately sent along with the release)
While addressing the meeting, Ms. Rita Menon, Union Textile Secretary highlighted the problems being faced by the textile industry, such as glitches on the banking front like high interest rates, tariff related issues, TUFs, incidence of state level taxes etc. She wanted more structured responses from the textile industry in terms of augmenting exports and imparting skills to more number of people to improve their employability in the textile industry. She also underscored the need for industry orchestrating their problems in a cogent manner so that their problems are heard and appropriate actions taken.