Union textile minister Dayanidhi Maran on Friday said he has pitched for a stimulus package for the textile sector, which has witnessed several job losses and negative growth owing to the slowdown in the major markets of the US and EU. The minister, who was in Mumbai to meet industry bigwigs, said that he has already proposed incentives to the finance ministry for the upcoming Budget but could not divulge details due to an ?oath of secrecy?.
Maran further said he expects to set up a national fibre policy by the year-end in an attempt to boost exports and local demand. The policy will help make Indian fibre competitive globally. He also said he will discuss the demands of the industry for labour reforms with labour ministry.
Maran said, ?The national fibre policy will look into ways of increasing exports and will also look at ways to boost local demand.?The minister said he will discuss the demands of the industry for labour reforms with labour ministry.
He further said that a stimulus package is the need of the hour for the sector, which has seen a downturn due to dip in exports and even local consumption has gone down.
The stimulus package announced by the erstwhile UPA government in December 2008, did not have much for the sector, except for a 2% interest rate subsidy on bank loans procured by textile exporters. Since then, the sector has been crying hoarse about being ignored by the government in the two stimulus
packages announced by the previous governments to fuel growth in the economy.
However, the minister also shared his plans to revive the sector. He said he has a three-fold approach which will help the industry build ?Brand India? globally; he will ensure that even local consumption should surge along with exports. Third, he will take initiative to implement the national fibre policy.
However, the textile sector has been hoping that the government gives them financial relief in the form of lower taxes. Also, they want the government to reduce duty drawback rates from 14% to 9%.