India's MMF industry demands fibre neutral excise policy

14 Nov '14

4 min read

“Correcting the excise duty anomaly in the textile sector has become vital now to attract more investment, step up production and boost exports through the ‘Make in India’ initiative. The recently unveiled Textile Vision Document envisages growth in textile exports to $300 billion by 2025 as compared to $39 billion now. Reaching this goal would result in creating 35 million additional jobs and require investment to the tune of $120 billion. Since this target would require flow of huge foreign direct investment (FDI) too, correction of the excise duty bias against synthetic textiles is essential. It will be a big boost to the Indian textile industry which accounts for about 17 per cent of the country’s exports, 6 per cent of GDP, 14 per cent of industrial production and generates employment for 35 million people.” adds Kapoor.

Correcting the excise duty anomaly would attract foreign investors with a balanced eco-system of tax equality and help the Indian textile industry to grow to $650 billion and earn foreign exchange to the tune of $300 billion by 2025.

“For this purpose textile fibre availability has to grow rapidly from current level of 10 billion kg per annum, comprising 6 billion kg of cotton and 4 billion kg of man-made fibres. At least 25 billion kg of fibre needs to be produced annually in the country to meet the 2025 goal and give a big thrust to Prime Minister Narendra Modi’s ‘Make in India’ initiative,” Kapoor said. (RKS)

Fibre2fashion News Desk - India

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