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Home / Knowledge / News / Textiles / Special relief package for textile industry in offing

Special relief package for textile industry in offing

22
Nov '08

A special relief package to prop the export sector is expected to be presented to the apex committee chaired by the Prime Minister by next week-end, Mr. G K Pillai, Commerce Secretary, announced here today.

Addressing a meeting on 'Global Slowdown and Strategies for Sustaining India's Export Growth', organised by FICCI, Mr. Pillai said: “The Committee of Secretaries has had detailed discussions with the various export sectors and we hope to finish the exercise by Monday. By the end of the week the export relief package would be presented to the apex committee for its approval”.

The relief package, he said, will factor in the difficulties being faced by exporters and the fall-out of the global financial crisis, “the worst of which will come in March-April 2009,” Mr. Pillai said. He urged exporters to bring to the notice of the finance and commerce ministries, bank braches that were hesitant or unwilling to lend, despite explicit instructions from the Reserve Bank of India.

Mr. Pillai said, a meeting of Chief Ministers has been convened in the first week of December to discuss issues relating to the export sector and expediting the payment of dues to the industry, including refund of VAT.

The Commerce Secretary said, the government would be most sympathetic to employment-intensive sectors such as textiles, gems & jewellery and handicrafts.

He said, the government would actively consider reinstating the duty drawback and DEPB rates which were lowered before the financial crisis gripped the world and the rupee was appreciating. It would also strengthen the anti-dumping mechanism to ward off large scale dumping from China, Korea and Taiwan.

Representatives from the textiles, chemicals, garments, leather & footwear, synthetic fibre, tyre, steel, roller flour mills, rice, handicrafts, automotive bicycles, and meat and livestock sectors listed out the problems being faced by their industries and urged the government to come out with immediate remedial measures.

FICCI

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