The special package for textile and apparel sector approved by the cabinet is expected to attract investments in the garment sector and give a boost to other segments in the textile value chain.
Tirupur Exporters’ Association president A. Sakthivel said the measures announced would help the garment industry compete with countries such as Bangladesh in the international market. Investments in the sector were not high in the last two years and it is expected to go up now. Covering the State levies under Duty Drawback is one of the long-pending demands of the sector, he said.
“We hope once the positive results are out, Government will extend it (incentives) to the entire value chain of textiles as the sector has huge potential for job creation,” Confederation of Indian Textile Industry Secretary General Binoy Job said.
Some incentives have a sunset clause, ie till year 2019. Department of Economic Affairs Secretary Shaktikanta Das said,“These are not open-ended incentives which will continue forever. All incentives will be valid for the next three years. We expect industries to make use of it and to create additional jobs.”
