FICCI Recommends Textile Industry Boost
Published By : 16 Jan 2014 | Published By : QYRESEARCH
FICCI has requested certain textile industry and labor reforms to stay under the lowest slab of the GST in the quest to boost the country’s clothing and textile industry. This way, India’s share will rise amongst the world exports.
All these recommendations have been proposed to the National Manufacturing Competitiveness Council Member Secretary Ajay Shankar. He is the Chairman of Expert Group of National Textiles Policy (constituted by the Government of India).
Some of the measures enlisted were providing dormitories for the unskilled and skilled labors through the National Textiles Policy, bringing down duties on customized man-made fibers with cotton in order to bring about neutrality in the sector, and lastly, revisiting the excise duty structure on yarns and fibers.
According to the Chairman of FICCI Textiles Committee, Shishir Jaipuria, textiles must stay at the lowest slab of GST (Goods and Services Tax). This is because it would provide a basic necessity to the population with better chances of employment potential.
Some of the other factors also included setting up of pollution free zones for textile in order raise the textiles exports from India.
FICCI is planning to invest in a separate scheme that provides additional support of Rs 5 crore for each Park Common Effluent Treatment Plant (CETP). Also, according to FICCI’s financial calculations the domestic textiles industry will grow by 7 percent, assuming India’s GDP grows by 7 percent on an average for the 12th five-year plan (2012-2017). This would only mean that the textiles industry would then stand at a USD 278 billion industry, of which mainly the exports would account for USD 145 billion.
Furthermore, with this growth, the textiles and apparel would create an employment of 15 million by 2016-16, which means, providing 30 million additional jobs by the year 2023, added FICCI.
It is understood that clothing and textiles sector is a labor intensive sector, and hence, it stands chance to provide employment to additional 20 million people from the current rate of population 45 million to 65 million by 2023, as observed by the industry chamber.
Nevertheless, the global figure of the total textile and apparel trade has expanded at a CAGR of 6.7 percent over the last 11 years. Various markets have been valued at USD 706 billion with major markets being present in countries like UK, China, Japan, Germany, and USA. India amongst these countries has a total share of 4 percent in the global exports of apparel and textile, added FICCI.