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By
Fibre2Fashion
Published
Jul 4, 2016
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Special package to be extended along textile chain

By
Fibre2Fashion
Published
Jul 4, 2016

Close on the heels of announcing industry friendly labour reforms and an ambitious Rs 6000 crore package for the garments sector, the government plans to extend the policy to other sectors in the textile value chain to maximise revenue and job creation in the textile industry, which is the second highest employer after agriculture in the country.


Special package to be extended along textile chain. - F2F


The textile ministry is ready with the draft of a new textiles policy in which it has started pitching for extension of the labour reforms to the textile (yarns, fabrics and made-ups) sector, media reports quoting senior ministry officials said.

Besides creating new jobs within, extension of labour reforms to textiles, including spinning, will enable India to capture the space being ceded by China due to soaring wages costs there, they said adding that the textile ministry has begun talks with the labour ministry already on this issue.

The extension of new clauses on fixed term employment and increase in overtime limit for willing workers (now only specific to garments sector) if extended to spinning, yarns and fabric units would enable the government realize its aim of creating 10 million new jobs and $ 40 billion additional exports in the textile and garments sector over and above $ 30 billion in 2015-2016.

Officials are also hopeful that the stimulus to the garment sector, if extended to related textile sectors, would rope in Rs 74,000 crore worth investment in the coming three years.

The draft of the proposed new textiles policy is ready and is likely to be taken up by the cabinet next month, Union Textile Secretary Rashmi Verma told a media group in Mumbai.

The focus areas of the policy are value addition down the value chain from fibre to garmenting, increase in production at every stage from fabric to processing to garmenting, she said adding that there will also be a focus on investment in technical textile sector in India.

The special package unveiled for garments sector in June was also part of the new textile policy, she said, adding that the draft had been circulated to different ministries to seek their comments on the issue.

Apart from the emphasis on processing, the proposed textiles policy has recommended that the duty on man-made fibres should be rationalised.

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