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Centre actively considering FTA with EU to boost Textile Trade

Capital Market 

The Government of recognises the significance of FTA with EU and the advantages it holds for the country. Ministry of Textiles is in constant touch with the Ministry of Commerce to pursue FTA with EU to boost the international trade, specially in the textile sector, said Rashmi Verma, Secretary, Ministry of Textiles, Government of

She further added that while enjoys preferential treatment and tax benefits for textile exports, has greater competitive advantage in terms of environmental compliances. As countries of the European Union lay huge importance to environmental compliances, stands to gain over Bangladesh, she added.

Indian textile industry is at a turning point. On one hand China's export growth in textiles is decreasing, India, riding on cost advantage, have huge potential to play a prominent role in international textile trade. is also amongst very few countries which have the entire value chain existing with the country. Further, following the true spirit of federal competitiveness, several states are coming out with their own policy and incentives scheme for the textile sector, which augurs well with the aim to make a leading global play in the textile sector.

Roll out of the GST will also greatly help in streamlining the tax structure and improve compliance, she added.

She appealed industry to take full advantage of the special package announced by the Government for the textile sector. She also pointed out that industry needs to increasingly focus on innovation, modernisation and technological advancement to become world-leaders in the textile sector.

Stressing on the importance of skilling the workforce to become globally competitive, she said, At least 10 lakh workers need to be skilled every year to meet the demands of the industry and create direct and indirect employment. In a significant development, the ministry of labour is soon going to notify labour reforms allowing fixed-term employment for the textile sector she added. She also announced that the Ministry of Textile is working on the new textile policy which will be announced soon.

The Indian textile industry must step up and take advantage of the fact that the world leader in textile - China, is moving away from the sector due to high cost of production. Union Government and state governments as well as the industry must work in tandem to capture share of the world market and occupy the space being vacated by China.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 18 2016. 10:27 IST