Approval of Rs. 3,000 crore investments for the garment industry

Approval of Rs. 3,000 crore investments for the garment industry

Textile Minister, Smriti Irani on the occasion of completing three years of Modi government, at the first official meet with the media in New Delhi touched each and every aspect of the textile industry and highlighted the government’s achievements during the periods. She said that a ‘Special Package’ of Rs. 6,000 crore which was announced last year, has so far approved an investment worth Rs. 3,000 crore for the apparel segment. She said apart from creating a positive impact, this package led to an increase in the Indian apparel exports by 4.7 per cent during the period, from July 2016 to February 2017.

To a question of Apparel Online of how far the ministry can complete its target in the next two years by attracting investments of US $ 11 billion (Rs. 74,000 crore) in the next three years to create more than one crore new jobs.

The minister said, “The investment of Rs. 3,000 crore shows that the administrative things which we need to notify, have been done on time. One of the hallmarks of this package is that whenever the industry faces any challenge regarding this package, they find a solution with office of the Textiles Commissioner or with the ministry. We do help the industry along with communicating to the states. Textiles India 2017 is a first initiative of its kind to boost international investment in Indian textile industry. I feel the entire value chain of the Indian textile industry will be under one roof in this event along with 17 ministries, and the opportunities are much higher. Textile consumer is fragmented and rather than looking at it just from apparel point of view, see it from the perspective of the entire chain including technical textiles, its requirement in 100 smart cities, etc.

Five major points were discussed at the Press Conference which ended with announcement
of a ‘big package’ for knitwear industry. Under the ‘Special Package’, an investment of around Rs. 3,000 crore has been approved so far.The Minister had a meeting with the Army Chief to explore possibilities to meet Army’s needs. Rs. 5,800 crore subsidies have been given to the industry in past three years under Amended TUFS and Office of the Textile Commissioner has become pro-active in recent years under this ministry.

Irani further said under the Pradhan Mantri Paridhan Rojgar Protsahan Yojana, over 1.4 lakh new workers have registered themselves for provident fund. She claimed that Rs. 1,900 crore duty drawback/ROSL has been already given to the textile and apparel industry to increase its export by further investment. The minister also informed that over Rs 1,900 crore have been given to the apparel industry under the rebate of state levies to boost exports.

Irani also stressed on the upcoming Textiles India 2017 fair which will be able to fetch lot of investment for the textile industry. Around 25 countries will take part in this mega event. Roadshows have been held in six countries including the UK, US, China, Russia, South Korea and UAE to attract the industry and potential investors. She assured the industry that National Textile Policy will be put in public domain as well before finalization, though she did not hint at when it will be rolled out.

Highlighting the efforts of the Textile Commissioner’s office, the minister said that the entire system of taking subsidy is now online and fully transparent. Functioning of garment manufacturing centres in all states of North East (apart from Sikkim), PowerTex India scheme, increase in silk and sericulture production, starting of 13 jute mills’ were some of the main focus points referred by the minister. Whatever announcements related to the textile industry were made by the Prime Minister Narendra Modi, her ministry executed them on ground, she added.

– Apparel and Textile News, Apparel Talk, Indian Apparel