;
Home / Knowledge / News / Textiles / Commerce minister pleads Govt to extend sops to exporters
Commerce minister pleads Govt to extend sops to exporters
27
Aug '08
The commerce department has taken upon itself the responsibility to address the grievances of the textile industry to the Central Government and to secure the availability of cheap credit for the sector.

With regard to this, Mr Kamal Nath, Commerce & Industry minister has also sent a message to Prime Minister Manmohan Singh, urging him to intervene and ensure continuation of 4 percent interest subvention for the sector which is reeling under the pressure of competition posed by the neighboring countries.

In a bid to tide over appreciation of rupee against US dollar, exporters were granted with a number of sops, all of which are scheduled to be withdrawn on September 30.

In an exclusive interview with Fibre2fashion, Mr DK Nair, Secretary General of Confederation of Indian Textile Industry, stated, “Government had announced a 4 percent subvention in the interest rate of packing credit for labor intensive industry like Textile. The subvention was announced for period up till March 31, 2009. However with the notification issued on August 1, 2008, RBI has stated that subvention will be withdrawn from October 1. Since the Government had announced subvention till March 31, 2009, textile exporters have entered into contracts taking this subvention into account. But these contracts will now become unviable.”

He further added that the textile producers require a time of 4 to 5 months and an additional 2 months notice to cope with the situation which has followed depreciation of rupee and the consequent rise in the cost of raw materials and production.

In the period between January and June this year, exports made to the US increased by a mere 1.79 percent instead of the normal growth of 15-20 percent. In fact, the total textile exports in the ongoing fiscal might be even lower then $20.5 billion made in the previous fiscal.

However, what troubles the industry most is the fact that while the Government is planning to completely do away with incentive for domestic exporters, the governments of China and Pakistan have reinforced their support by providing fresh incentives to their respective textile industries. While China has increased VAT refund given to synthetic and cotton producer to 13 percent against earlier rates of 9 and 11 percent, respectively, Pakistan, too, has introduced a 6 percent Research & Development assistance to its garment exporters which is now being extended to other segments of the textile sector.

This is bound to make business even tougher for Indian manufacturers who are already worried over lower demand from the US, due to economic slowdown and higher material prices which have caused shrinking of their profit margins.

Mr Nair has also emphasized on the need to ensure that the state and central taxes paid by the exporters are refunded either by the state or by the central government without any hassles.

Fibre2fashion News Desk - India


Must ReadView All

India should consider 100% FDI in multi-brand retail: CII

Apparel/Garments | On 17th Dec 2018

India should consider 100% FDI in multi-brand retail: CII

The Indian Government should consider permitting 100 per cent foreign ...

Texhong Textile acquires Winnitex for HK$1350 mn

Textiles | On 17th Dec 2018

Texhong Textile acquires Winnitex for HK$1350 mn

Texhong Textile Group, one of world’s largest core spun yarn...

Courtesy: Donear

Textiles | On 17th Dec 2018

Grado to launch cotton fabrics collection next year

Grado by the house of OCM and GBTL-Grasim, owned by Donear Group,...

Interviews View All

Jurgen Gauger, Spreadshirt

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Viral Desai, Zenitex Mill Pvt Ltd

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Marazban F Velati, Sutlej Textiles & Industries limited

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Manuele Baggini,

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search