Cabinet okays sops to boost textiles manufacturing, exports; shares mixed

By: | Updated: June 22, 2016 4:09 PM

Textile-related stocks closed mixed on Wednesday after Cabinet approved sops to boost job creation, manufacturing and exports in labour-intensive textile sector.

Textile stocks -cabinet policyTextile-related stocks closed mixed on Wednesday after Cabinet approved sops to boost job creation, manufacturing and exports in labour-intensive textile sector.

Textile-related stocks closed mixed on Wednesday after Cabinet approved sops to boost job creation, manufacturing and exports in labour-intensive textile sector. Earlier, there were TV reports that Union Cabinet will approve the new textile policy on Wednesday. Secretary in the Department of Economic Affairs Shaktikanta Das later clarified and told business news channels that the new textile policy is on the agenda and work is under progress.

Shares of Aarvee Denim closed 7.23 per cent up at Rs 85.30. However, Gokaldas Exports sttled 5.05 per cent down at Rs 110.85.0

Other textile players such as Kitex Garments and Arvind closed lower by 3.40 per cent and 0.87 at Rs 482.75 and Rs 324.15. However, Lakshmi Machine Works ended 0.90 per cent up at Rs 3519.45.

Read more: Defence-related stocks surge on FDI approval of up to 100%

The BSE Sensex ended 47.13 points down at 26,765.65.

“Cabinet has approved concessions to boost manufacturing and exports in textile sector,” official sources said. Moreover, production incentives through Technology Upgradation Fund Scheme (TUFS) linking capital subsidy will be introduced.

According to sources, the measures also include simplification of labour laws like introduction of fixed term employment and enhancing duty drawback to push textile and apparel exports.

Earlier, the government on Monday had announced FDI reforms for several sectors by allowing 100 per cent inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals.

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