Vision, Strategy and Action plan for Indian Textile and Apparel Sector
Original Document available online at http://texmin.nic.in/Reports/Vision%20Strategy%20Action%20Plan%20for%20Indian%20Textile%20Sector.pdf
August 2014
2
Vision
The present Indian domestic market size of approx. US$ 100 billion should grow at a CAGR of 12% to reach US$ 350 billion by 2024-25.
Indian exports of textile and apparel products should increase from present level of approx. US$ 40 billion at a CAGR of 20% to reach US$ 300 billion by 2024-25
3
Strategy
10 point
strategy
Achieving Scale across the
Value Chain
Attract Investment into
the Sector
Skill, Quality and
Productivity
Reforming Labour Laws
Structural Shift with increasing Value Addition
in India Diversification of Exports in
terms of Products and
Markets
Promoting Innovation and
R&D
New Approach towards
Handloom and Handicrafts
Partnership with State
Government
Reengineering of Existing
Schemes and Policies
4
Action Plan
Scale and Investments • Maintaining competitive exchange rate • 15% investment allowance • Hire-purchase of looms & knitting m/c • GST implementation • Service Tax exemption • Equity fund for start-ups and expansion • Mega textile Parks • Attracting FDI
Skill, Quality and Productivity
• Scaling up existing skill development initiatives • Tax relief on Skill development agency fee • National Manufacturing Competitiveness
Programme • Worker housing / dormitories to be an intrinsic
part of Textile Parks • Promoting machinery manufacturing
Labour Law Reforms
• Women Night shift working • Fixed term employment • Reviewing overtime caps • Industrial Disputes Act norms • Contract labour in EOUs to be allowed
Focus on Value Addition • Plug & Play in garment sector • Export finance @ 7% • Promotion of Technical textiles sector
Export Diversification
• Country specific export strategies • 5 year tax holiday for select products • Mega trade exhibition • Brand India
Promoting Innovation and R&D
• Supporting brands to go global • E-commerce for exports • FDI in Indian brands • Tax benefits for contract R&D • Promoting eco-friendly technologies • ‘Size India’ • Cotton & Jute - Better yields and technology
adoption in farming • ESCO concept in Jute mills, NID/NIFT for
product development, LCA and eco-labelling • Mobile apps for farmers and MSMEs
Continued…
5
Action Plan
Partnership with State Government and Reengineering of Existing Schemes and Policies • SITP: SPV involving State Government, Interest
subsidy instead of capital subsidy and Theme based parks
• TUFS ‐ Borrower to directly get effective rates ‐ Loan period – 2 + 7 years ‐ 10% capital subsidy for select silk and wool
m/c ‐ Group workshed to be merged with TUFS ‐ Ginning and pressing to be covered
• IPDS:30 year loans @7% to clusters and New processing investments along coastline
• SEZ: Nominal duty to dispose-off seconds and rejects; Surplus capacity of SEZ units to do jobwork for DTA; DTA units to utilize surplus common facilities
• MSP for 5 cotton types and Tassar Silk • Apparel parks in states with migratory labour
• Knitting at par with weaving, Accessories & JDP at par with garmenting
• Review of input/output norms • Scaling up schemes for Silk branding • Package Commodity Act issue • CAB – review of methodology; to act as
advisory body for use of seed, farming practices, R&D
• CCI - function as business trading house; conduct R&D / trials
• NIFT to have Plug & Play incubators • Cotton WC norms of 9 months and 3 months
for Jute • JPM to be phased out, linked with
modernization and market development for alternative products
Top Related