CMAI Hails New Package For Textile Industry

CMAI Hails New Package For Textile Industry

The Clothing Manufacturers Association of India (CMAI) has welcomed the Rs 6,000 package for textile industry saying it has removed some “serious irritants that had been pulling back the country’s garment industry for a long time.”

Congratulating Prime Minister Narendra Modi and textiles minister Santosh Gangwar, CMAI president Rahul Mehta said in a press release that package had “unshackled” the garment sector and the results would be seen by way of more jobs and higher exports.

Mehta observed that inclusion of state level taxes in the computation of duty drawback will address a long standing demand of the garment industry and would provide a major relief to the export segment.

Commenting on the new employee provident fund norms with government bearing the whole PF burden of the industry and making it optional for employees earning less than Rs.15000 per month, would help immensely. Increasing the overtime cap is another measure that will benefit both employers and employees, Mehta said.

The provision on fixed time employment would help the industry in making seasonal adjustments in the workforce that had been another long standing demand of garment manufacturers.

CMAI also hailed increase in the TUFS subsidy by 10 per cent and the provision for Drawback on garment exports from duty-free fabrics, to the extent of duty paid inputs used in such exports.