New Textile Policy To Be Announced Soon

New Textile Policy To Be Announced Soon

The government will soon announce a new modified textile policy which aimed at increasing the productivity of textile sector, generating more employment, bringing down the cost of production, penetrating into newer markets and focusing both on exports and domestic markets.

Textiles ministry is now in talks with the Labour ministry as they seek some relaxation in labour laws such as allowing women to work at night. They also want modification in contract laws. Tamil Nadu has already done it, textile sectary, Rashmi Verma said.

As the growth of textile sector is limited to factors such as high cost of production, sudden spurt in interest rates on working capital and increase in labour wages, the textiles ministry is also in discussion with the finance ministry to offer some kind of tax incentives to the weavers to make the sector attractive. This also included tax holidays and interest subvention among others.

Most of the incentives or subsidies given by the ministry are production related. Those related to processing and skilling would be continued.

Regarding the revised Textile Upgradation Fund Scheme, upgraded guidelines has been finalized and it will be placed before the Cabinet, she said.

The textiles ministry would also be holding a meeting of all stakeholders next month to take stock of the current situation as it would review which were the subsidies and concessions that could be continued or phased out as India was a signatory to WTO guidelines, Verma added.