Textile production-linked incentive scheme to get Cabinet nod soon: Textile minister Piyush Goyal

By: |
September 04, 2021 2:30 AM

Commenting on the PLI scheme, the minister said the idea behind all such schemes was to create a few “global champions” in select sectors.

The ministries of commerce and finance are working on the interest equalisation scheme and enhanced insurance cover for exporters via state-run ECGC, Goyal said.The ministries of commerce and finance are working on the interest equalisation scheme and enhanced insurance cover for exporters via state-run ECGC, Goyal said.

Textile minister Piyush Goyal on Friday said a proposed Rs 10,683-crore production-linked incentive (PLI) scheme for technical textiles and man-made fibre products will be approved by the Cabinet soon, which will bolster domestic manufacturing as well as exports.

The government and the industry have set an export target of $44 billion for the textiles and garment sector for FY22, up 33% from a year before. “Delighted at the way the textiles sector has engaged with the idea of achieving bigger targets. We must aim for a $100-billion export target in the next five years,” Goyal added.

The ministries of commerce and finance are working on the interest equalisation scheme and enhanced insurance cover for exporters via state-run ECGC, Goyal said.

Apart from the PLI programme, the Mega Investment Textiles Parks (Mitra) scheme, under which seven such parks will be established over the next three years, is “at an advanced stage of approval”, the minister said. The scheme was announced in February, in the Budget for FY22.

Goyal exhorted exporters to boost their competitiveness so that they can stand on their own feet without government dole-outs. Past experiences suggest wherever the government removed subsidies, the sectors have flourished on their own, he said.

Domestic industry will also have to prepare itself for some give-and-take, as they seek free trade agreements with key economies. He said trade negotiations are always a two-way process; they can’t be a “one-way traffic”.

India is in talks with the UK, the EU, the UAE, Australia, among others, to forge “fair and balanced” trade pacts. While the agreements with Australia, the UK and the UAE may be clinched relatively early, the negotiations with the EU may be a time-consuming process, given that the bloc has 27 nations, the minister said.

Commenting on the PLI scheme, the minister said the idea behind all such schemes was to create a few “global champions” in select sectors. The PLI scheme for products made of man-made fibre and technical textiles is yet to be cleared by the Cabinet, amid clamour for a reduction in the “ambitious” turnover and investment targets proposed under a draft scheme.

For instance, the draft scheme had pledged as much as 11% incentive to large companies for investments over Rs 500 crore in greenfield projects. The benefit, however, was linked to an incremental turnover of Rs 1,500 crore in the first year itself and a 25% rise in turnover each year after that.

The garment sector, comprising mainly MSMEs and dominated by cotton-based players, also wants the inclusion of value-added cotton products in the scheme to benefit a large number of businesses.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1‘Quad’ countries to agree on secure microchip supply chains: Report
2Yes Bank-DHFL case: No sympathy, says court, Rana Kapoor’s wife, daughters remanded to judicial custody
3Under CCI lens, Google says Android has led to more competition and innovation