Terming the Package as “Growth oriented and visionary”, CMAI president Rahul Mehta thanked Modi and Union textiles minister Smriti Irani.
Identifying scarcity of working capital as a major constraint for the garment industry, Mehta said that the 2 per cent Interest Subvention for New Loans, 2 per cent Additional Subvention for Export Credits and Clearance of Loans within 59 minutes would immensely help the country’s garment industry to address working capital problems. Credit based on Upcoming Receivables under e-discounting system is another welcome step in this direction, he said in a press release.
The garment industry being the most labour-intensive segment of the manufacturing sector, complying with the requirements under various labour laws is a major responsibility for the industry. The present government had initiated some labour reforms for the segment earlier under a Special Package. Stricter Regulation of visits by Inspectors and stipulating that Returns Under 8 Labour Laws and 10 Union Regulations have to be filed now only on annual basis have taken this process further ahead, said Mehta.
He also welcomed social security measures contemplated for workers in the MSME sector. (RKS)
Fibre2Fashion News Desk – India