Current Initiatives by Government : Textile Industry
Current Initiatives by Government
Government has come up with a number of initiatives for encouraging export in textile sector. It has also allowed 100 per cent FDI (Foreign Direct Investment) in this sector under the automatic route.
2. The Union Cabinet has cleared a Rs 6,000 crore package for the textile sector, aimed at attracting investments worth Rs 74,000 crore
3. The objective of the package is to generate 1 crore additional jobs and incremental exports of 30 billion US dollars in the next three years.
4. The Department of Handlooms and Textiles has tied up with nine e-commerce players and 70 retailers to increase the reach of handlooms products in the Indian market.
5. The Union Ministry of Textiles has set a target of doubling textile exports in 10 years, plans to enter into bilateral agreements with Africa and Australia.
6. Government is also finalizing guidelines for the revised Textile Upgradation Fund Scheme (TUFS).
7. The Government of India has started promotion of its ‘India Handloom’ initiative on social media like Facebook, Twitter and Instagram with a view to connect with customers.
8. The Ministry of Textiles launched Technology Mission on Technical Textiles (TMTT) with a total fund outlay of Rs 200 crore to encourage research through 8 Centres of Excellence.
9. The new policy aims at creating 3.5 crore new jobs by way of increased investments by foreign companies.
10. Subsidies on machinery and infrastructure
a) The Revised Restructured Technology Up gradation Fund Scheme (RRTUFS) covers manufacturing of major machinery for technical textiles permits 5 per cent interest reimbursement and 10 per cent capital subsidy.
b) Under the Scheme for Integrated Textile Parks (SITP), the Government of India provides assistance for creation of infrastructure in the parks to the extent of 40 per cent with a limit up to Rs 40 crore .
c) The major machinery for production of technical textiles receives a concessional customs duty of 5 per cent.
d) Specified technical textile products are covered under Focus Product Scheme. Under this scheme, exports of these products are entitled for duty credit scrip equivalent to 2 per cent of freight on board (FOB) value of exports
e) The Government of India has implemented several export promotion measures such as Focus Market Scheme, Focus Product Scheme and Market Linked Focus Product Scheme.
f) Under the Market Access Initiative (MAI) Scheme, financial assistance is provided for export promotion activities on focus countries and focus product countries.
g) Under the Market Development Assistance (MDA) Scheme, financial assistance is provided for a range of export promotion activities.
h) The government has also proposed to extend 24/7 customs clearance facility at 13 airports and 14 sea ports resulting in faster clearance of import and export cargo.
i) A Memorandum of Understanding (MoU) has been signed between India and Kyrgyzstan seeking to strengthen bilateral cooperation in three fields -Textiles and Clothing, Silk and Sericulture and Fashion technology.