Government creates team to create yarn export incentive scheme
today Aug 30, 2019
The government has created a secretaries’ committee to look at a new scheme to increase yarn textile exports as the industry sees a downturn.
As India’s yarn exports see a decline, the government is looking for ways to revive the industry, ET Bureau reported. Cotton yarn exports decreased by 35% in the first quarter of the 2020 financial year which is the direct opposite of what the central government is trying to achieve with its “Make in India” campaign.
The government has set up a committee of secretaries from several ministerial departments to consider a scheme to increase yarn exports. The country is facing increased competition from countries such as Vietnam and Bangladesh.
The Prime Minister’s Office instructed the setting up of the committee after it reviewed the Rebate of State and Central Taxes and Levies scheme. Voices from the textile industry had already been raised, asking for the scheme to be extended beyond the apparel sector to include other parts of the textile production chain such as yarn.
“An inter-ministerial committee has been set up to look at RoSCTL for all products including yarn, which is in trouble,” an official source told ET Bureau.
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