Clothes Manufacturing & Exports, India
The Indian Government has announced a Rs6,000-crore Package for the Textiles and Apparels sector to help it wrest a bigger share of the Global Market. The package also provides the sector more flexible labor Laws and Financial Incentives. It hopes the package will create 1 Crore new jobs in 3 years, attract Rs74,000 Crore in Investment and generate $30 billion in Exports earnings.
5,000 Cr of Investments to flow in Indian Apparel Manufacturing
AEPC Chairman Ashok Rajani declared that the Industry possibly will ensure 5,000 crore CapEx in a time ahead.
Apparel Export Promotion Council of India is hopeful for Rs.5,000 Crore of Investments to be sailed in the Apparel Manufacturing Industry in Current Fiscal. The Investments could generate over two million Work Vacancies.
Calling the freshly declared Rs.6,000 Crore supportive package by the Government as ‘game changer,’ AEPC Chairman acknowledged that the Industry can witness Rs.5,000 Crore CapEx in near time to come.
The extra Venture Capital in Garment Manufacturing units in India has a facility to give way to two million Jobseekers and that the actions can practically double the Capital Subsidy to 25% of Investment.
The Chairman is confident that the goals can be reached certainly as the Industry got a fresh package and flood of Investments are on track.
The better Duty Drawback of 12.25%, an increase from previous 7.25%, is a key takeaway from the package leaving the ball in the court of an Industry.
On June 22, 2016, the Indian Cabinet passed a 6,000 Crore Incentive Package for the Apparel and Textile Industry in an attempt to produce one Crore Job Openings in next three years, attract $11 Billion worth investments and earn $30 Billion via Exports.
Indian Apparel Industry confident of achieving $30 bn exports target
The industry vouchsafed an inclusive Investment of Rs.623 Crore to attain a goal.
Apparel Exports Promotion Council (AEPC), the official federation of Apparel Exporters in India, said that it is certain of completing the mark of $30 Billion in Exports set by the Government, and as well as pledged to go beyond to outdo it.
The press conference was arranged to deliver the facts of the execution proposal and the way forward, on the special package of reforms announced by the Government for the Textile and Apparel Sector.
Last week, the Respective Government has declared a special package of Rs.6,000 Crore for Textiles and Apparel Sector, to generate one Crore further Vacancies in the next 3 years and produce $30 Billion in Exports.
AEPC, in a presentation, cited that there is an imperative demand for Job Creation and there is a huge potential for Employment in the Apparel Sector.
An investment of Rs.1 Crore can generate 70 jobs directly and more indirectly.
Delivering her special address, Sunaina Tomar, IAS, Joint Secretary (Exports), Ministry of Textiles, said, “The reforms have been started for the improvement of labor in the sector such as the Government will bear the contribution of employers under the EPF Scheme for those who are earning below Rs.15,000 per month, during the first 3 years. This will help in leaving more money in the hands of labor.”
On the question of goal probability, she said, “The given task is achievable and I am confident that our industry will attain it.”
She also calls for APEC to organize a time-bound action plan as to what steps to be taken to create additional Employment.
The Indian Government will foot the entire 12% of employer's contribution under the Employers Provident Fund Scheme for new hands hired by the Industry and earning less than Rs15,000 a month for the first three years. This is higher than the 8.33% share borne by the Government under the Pradhan Mantri Rozgar Protsahan Yojana (PMRPY).
This will add up to a benefit of Rs1,170 Crore over the next three years for the Industry.
The Industry will be allowed to hire workers for fixed-term employment because of its seasonal nature, but such workers will be at par with permanent workmen in terms of working hours, wages, allowances, and other statutory dues.
The package provides additional duty drawback incentives for Garments, flexibility in labor Laws to increase productivity as well as tax and production sops for job creation in Garment Manufacturing.
India's textiles and apparel exports add up to about $40 billion. India has not been able to take advantage of rising wages in China to get a bigger share of the exports market despite having abundant labor and entire value chain of fiber to fabric.
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