Industry body FICCI has suggested measures like labour reforms and keeping textile industry under the lowest slab of GST to boost the country’s textile & clothing industry and raise India’s share in world exports.
These recommendations have been submitted to National Manufacturing Competitiveness Council Member Secretary Ajay Shankar, who is also the Chairman of Expert Group on National Textiles Policy constituted by Government of India.
The measures suggested include providing “dormitories” for ensuring supply of skilled and unskilled labour to the textile factories through a provision in the National Textiles Policy, revisiting excise duty structure on fiber and yarns and bringing down duties on man—made fibers at par with cotton to bring neutrality in the sector.
“The textile industry should be kept in the lowest slab of Goods and Services Tax (GST) as it provides a basic necessity to the masses with large scale employment potential,” Chairman of FICCI Textiles Committee Shishir Jaipuria said.
Other measures included setting up of pollution free zones for textile processing to help in increasing textiles exports from India.
A separate scheme in this regard needs to be introduced, which provides additional support of Rs 5 crore for each Park for setting up Common Effluent Treatment Plant (CETP), Ficci said.
“Assuming India’s GDP grows by 7 per cent on an average over the 12th five—year plan period (2012—17) as per the estimates of Planning Commission and if the domestic textiles industry also grows by 7 per cent, it would mean that the textiles industry would be a USD 278 billion industry, of which exports would account for USD 145 billion,” Ficci said.
As per the 12th Plan working group on textiles and apparel, the textiles sector will create an additional employment of 15 million by 2016—17, which means the sector can provide 30 million additional jobs by 2023, Ficci said.
Given that textiles & clothing sector is a labour intensive sector, it can provide employment to at least an additional 20 million people from the current 45 million to 65 million by 2023, the industry chamber observed.
Globally, the total textile and apparel trade has grown at a CAGR of 6.7 per cent in the last 11 years, being valued at USD 706 billion with major markets being USA, Germany, Japan, China and UK. India has a share of 4 per cent in global exports of textile and apparel, FICCI said.