Centre To Announce Fiscal Incentives For Textile And Apparel Industry By Year End: Citi
Date
8/27/2023 9:37:17 AM
(MENAFN- KNN India)
Centre To Announce Fiscal Incentives For Textile And Apparel industry By Year End: CITI New Delhi, Aug 24 (KNN) The central government is expected to announce fiscal incentives for the ailing textile and apparel industry by the end of this year, Confederation of Indian Textile Industry (CITI) said on Wednesday.
As per reports, the incentives could come under the production linked incentive (PLI) scheme that promises billions of dollars to boost manufacturing ranging from electronic products to pharmaceuticals.
"The government could make an announcement by December," said T. Rajkumar, chairman of the Confederation of Indian Textile Industry (CITI), referring to industry representatives' meetings with textile and finance ministry officials earlier this month.
Earlier this month, government officials reviewed the PLI scheme, launched in 2020, under which government proposed to offer around USD 24 billion in cash incentives to 14 sectors.
The USD 150 billion textile and apparel industry, which employs over 45 million, is facing declining exports as European and U.S. consumers cut back on spending amid an inflationary squeeze.
India's textile and apparel exports fell nearly 14 per cent to USD 11.25 billion in April-July, the first four months of the current fiscal year to March 31, 2024.
In a submission to the government, the industry has asked for fiscal incentives for smaller manufacturers under the PLI scheme and urged the government to withdraw 11 per cent import duty on certain varieties of cotton, imported from Egypt and the United States, to meet specific orders, reported Reuters.
Rakesh Mehra, president of Indian Spinners Association, said the industry needed government support and signing of proposed free trade agreements with the EU and Britain to boost exports.
Nearly one-third of spinning units have cut production leading to fears of job losses, Mehra said.
(KNN Bureau)
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