Incentives announced for textiles will help create jobs
The “extra push” given to the textiles industry through an incentive
package will help create more jobs and push exports, Commerce and
Industry Minister Nirmala Sitharaman said today.
“It is a sector where India has gained a lot of advantage … It has a
great potential for job creation,” the minister told reporters here.
This “extra push” was given to the sector due to various global developments, she said.
The Union Cabinet yesterday approved a Rs 6,000 crore package for
textiles and apparel sector with an aim to create one crore new jobs in
three years and attract investments of USD 11 billion while eyeing USD
30 billion in exports.
Textiles exports contribute significantly to the country’s total
exports at about USD 17 billion in 2014-15. The sector is witnessing
huge competition from small countries like Bangladesh and Vietnam, which
have access to developed markets at lower tariffs.
When asked about the impact of Brexit (possible exit of Britain from
European Union) on India, Sitharaman said that the government is
“watching the situation”.
“We will be observing the developments. It is too early for me to comment (on its impact),” she added.
Talking about the stalled India-EU free trade agreement, the minister said India is waiting for the dates to resume the talks.
“We are waiting for the dates. It is my doubt that if because they
are waiting for the outcome of Brexit, they have not yet given the dates
as yet. The moment they give the dates, we will be keenly wanting to
continue the talks to reach the conclusion at the earliest,” she added.
Launched in June 2007, the negotiations for the proposed agreement
have witnessed many hurdles with both sides having major differences on
crucial issues like intellectual property rights, duty cut in automobile
and spirits, and liberal visa regime.
The pact is aimed at reducing or significantly eliminating tariffs on
goods, facilitating trade in services and boosting investments between
the two sides.
When asked about Apple Inc’s proposal to open single brand retail
stores in the country after announcement of the tweaked FDI policy in
the sector, Sitharaman said: “We have announced the policy. We will wait
to hear from them”.
The ministry has stated that it will give exemption to foreign firms
such as Apple Inc coming with state-of-the-art technology from the
mandatory local sourcing norms in the single-brand retail sector for up
to three years.
PTI
