New Textile Policy Proposal can be beneficial to India
The policy has proposed strategies that leads to value addition within the country. As of now, India is producing $11billion worth of fibre. However, garments manufactures are only $3.6 billion. It is observed that lots of fibre and yarn are currently exported. The policy is proposed in lines of ILO (International Labour Organization) guidelines.
Some of the insights are:
- INR 6,000-crore i.e. USD 891.9 million textiles policy predicts significant flexibility in labour laws which will boost exports and generate employment.
- Some special boost will be allocated to the garment sector which plans to bring more investment and will boost exports.
- Policy plans to make garments more competitive for the international market by reducing cost of production.
- Policy aims to make India an exporter of value-added products rather than just raw material.
- Number of initiatives are also being proposed to promote the technical textiles sector.
- Policy plans to promote rationalised duty structure for man-made fibre. As of now, 12% duty is applicable on man-made fibre both excise duty and import duty, whereas for cotton there is no duty at all. This is not favorable to both domestic and international market.
- In the first stage, policy has proposed to reduce man-made fibre duty to 6%. Later, it plans to make the duty neutrality.
- Policy plans to provide greater incentive to all those units which employ about 70% women. This unit will be supported in terms of giving subsidy for construction of working women’s hostel and other kinds of facilities.
- Policy plans to make special agreements with countries like Russia and Brazil, so that some preferential tariff pacts can be signed.