'Special package to boost textile exports, create jobs'

Textiles and apparel players today said the Rs 6,000-crore package to the sector would help boost exports and create more jobs as government has removed serious "irritants" that were pulling back the industry.
The industry players, however, expressed deep concerns over exclusion of home textiles from the package, saying it is equally labour intensive sector.
The Union Cabinet yesterday approved a Rs 6,000 crore package for textiles and apparel sector with an aim to create one crore new jobs in next three years and attract investments of USD 11 billion while eyeing USD 30 billion in exports.
"We welcome the cabinet approval for a special package for labour intensive apparel sector envisaging higher growth in export of apparel products and job creation over the next three years," Cotton Textiles Export Promotion Council (Texprocil) Chairman R K Dalmia said in a statement here.

He, however, expressed deep concern over home textile sector being ignored for consideration in the special package, which is equally labour intensive industry at par with apparel sector.
Texprocil said the fabric and home textile industry are ignored in the special package in spite of several representations and justifying presentations made by the industry body.

Dalmia appealed to the government to consider treating all the 'cut and sew' products (including home textiles and made-ups) for granting benefits under the special package for employment generation and promotion of export, at par with apparel products.
The Clothing Manufacturers Association of India (CMAI) President Rahul Mehta the government has removed some of the serious irritants that had been pulling back the country's garment industry for a long time.

"The announcements have unshackled our garment industry and the results will be evident not only by way of additional employment generation but also additional exports," he said.
Mehta said inclusion of state-level taxes in the computation of duty drawback will address a long standing demand of the industry and will provide a major relief to the exporting segment.
The government bearing the whole PF burden of the industry and making PF optional for employees earning less than Rs 15,000 per month - will help the industry as well as workers.
Increasing the overtime cap is another measure that will benefit both employers and employees.

Referring to the provision introduced for fixed time employment, Mehta pointed out that this is another suggestion that the industry has been making for a long time, and the provision will help in seasonal adjustments in the workforce required by the units.