Industry Associations Urge Government For PLI 2.0 For Textile Sector


(MENAFN- KNN India) Tiruppur, Sep 16 (KNN) The Tiruppur Exporters' Association (TEA) has formally requested the Indian government to introduce a new iteration of the production-linked incentive scheme, dubbed PLI 2.0, for the textile sector.

In a memorandum addressed to Union Finance Minister Nirmala Sitharaman, the association outlined several proposals aimed at bolstering the industry.

TEA highlighted that the current PLI scheme primarily benefits large textile units, particularly those in the manmade fibre sector.

To address this imbalance, they suggested reducing the minimum capital outlay requirement and expanding the scheme's scope to include cotton-based industries, thereby supporting small and medium-sized enterprises (SMEs).

The association also advocated for a one-year extension of the Interest Equalisation Scheme (IES) to all units.

The IES, which was recently extended by two months from its original June 30, 2024 expiry date by the Ministry of Commerce and Industry, currently applies to Rupee credit for pre and post-shipment for MSMEs.

TEA raised concerns about delays in importing woven labels due to the Customs Department's Compulsory Compliance Requirements (CCRs).

The association reported that importers face delays of five to seven days as Customs mandates group sample testing in laboratories, disregarding shippers' lab reports or external reports from the country of origin. These delays, TEA noted, are affecting export schedules.

In a related development, the South India Hosiery Manufacturers Association (SIHMA) proposed additional measures to support the textile industry.

These include extending capital subsidies to units investing in machinery and establishing a Knitwear Board to support garment units in Tiruppur.

SIHMA also urged the government to implement measures to regulate garment imports from Bangladesh, citing negative impacts on smaller local manufacturers.

These proposals from industry associations underscore the challenges and opportunities facing India's textile sector, highlighting the need for targeted government interventions to promote growth and competitiveness.

(KNN Bureau)

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KNN India

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