A slew of steps to stitch well

New Delhi, January 30: | Updated: Jan 31 2002, 05:30am hrs
The medium term export strategy for textile sector comprises a slew of measures to attract large investments such as accelerated depreciation for machinery under technological upgradation fund scheme (TUFS), reduced rate of duty for import of capital machinery and de-reservation in the woven sector of the readymade garments.

The small-scale industry limit is also proposed to be increased from Rs 1 crore to Rs 5 crore in case of knitwear/knitting industry to attract foreign direct investment.

“Investment in general and especially for modernisation will be encouraged through schemes such as TUFS, changes in fiscal structure, a programme to induct 50,000 shuttleless looms and to modernise 2.5 lakh plain powerloom to semi-automatic loom will help increase the weaving capacity and also improve quality of fabric,” according to the strategy document.

Infrastructure development, brand promotion and export market assistance schemes, smoothening of existing schemes and labour laws have been identified as other focus areas to boost textile exports.

The government proposes to set up apparel park for exports to provide world class infrastructure to encourage setting up of export-oriented garment/integrated units to take advantage of the opening up of global market in 2005.

Textile centres infrastructure development schemes will be implemented to fill up critical gaps in infrastructure needs of the existing textile centres.

A brand promotion scheme focusing on new products with international quality and high growth potential will also be introduced to improve perception of Indian textile items in the international market.

The strategy paper highlights the needs to have stable and predictable policy regime so that exporters can adopt uniform pattern of trading to avoid adverse impact of mid-term changes. DTA units which export a minimum of 50 per cent of the their overall production should be given facilities and incentives at par with 100 per cent EOUs.