Interviews
Textile industry able to improve performance in post MFA regime
08 Jun '07
3 min read
The following are the excerpts from the “Report to the People 2004-07” on Textile Ministry. The report was released by the Prime Minister, Dr. Manmohan Singh on 22nd May, 2007. The report in full and its highlights are available on PIB website.
Textile industry has been able to generate considerable employment and promote exports and improve its performance in the post – Multi Fibre Agreement regime. A major package, including tax relief, was provided.
Basic customs duty on various textile machinery and spare parts has been reduced, additional capital subsidy has been provided for processing, duties on specified textile machinery items, raw materials and spare parts has been brought down, and excise duty on polyester filament yarn has been reduced.
The scope and outlays of schemes like the Technology Upgradation Fund Scheme and the Technology Mission on Cotton has been augmented to modernize the industry and to ensure availability of quality raw material at competitive prices. The Scheme for Integrated Textiles Parks has been launched to strengthen infrastructure.
Under the scheme, it is proposed to set up 30 Integrated Textiles Parks by 2008, with an investment of over Rs. 13,000 crore. These parks will generate annual production of over Rs. 20,000 crore, and create over half a million new jobs. Due to focused support to cotton-growers cotton production and productivity have touched record heights.
The textiles sector has grown phenomenally since the phasing out of the Multi-Fibre Arrangement (MFA) after 2004. it is expected that by 2011-2012, the textiles sector will more than double to US$ 115 billion. The estimated investment during this period will be approximately Rs. 1,50,000 crore, which will generate employment for approximately 17 million workers.
Textile industry has been able to generate considerable employment and promote exports and improve its performance in the post – Multi Fibre Agreement regime. A major package, including tax relief, was provided.
Basic customs duty on various textile machinery and spare parts has been reduced, additional capital subsidy has been provided for processing, duties on specified textile machinery items, raw materials and spare parts has been brought down, and excise duty on polyester filament yarn has been reduced.
The scope and outlays of schemes like the Technology Upgradation Fund Scheme and the Technology Mission on Cotton has been augmented to modernize the industry and to ensure availability of quality raw material at competitive prices. The Scheme for Integrated Textiles Parks has been launched to strengthen infrastructure.
Under the scheme, it is proposed to set up 30 Integrated Textiles Parks by 2008, with an investment of over Rs. 13,000 crore. These parks will generate annual production of over Rs. 20,000 crore, and create over half a million new jobs. Due to focused support to cotton-growers cotton production and productivity have touched record heights.
The textiles sector has grown phenomenally since the phasing out of the Multi-Fibre Arrangement (MFA) after 2004. it is expected that by 2011-2012, the textiles sector will more than double to US$ 115 billion. The estimated investment during this period will be approximately Rs. 1,50,000 crore, which will generate employment for approximately 17 million workers.
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