The Union Government has fully recognised the significance of FTA with the European Union (EU) and the advantages it holds for the country. The Ministry of Textiles is in constant touch with the Ministry of Commerce towards signing an FTA with the EU to boost international trade, specially in the textile sector, said Ms. Rashmi Verma, Secretary, Ministry of Textiles.
Addressing industry leaders at Texcon 2016, a two-day international conference on textiles and apparel organised by the Confederation of Indian Industry (CII) in New Delhi, she disclosed that while Bangladesh enjoys preferential treatment and tax benefits for textile exports, India has greater competitive advantage in terms of environmental compliances. As countries of the European Union attach huge importance to environmental compliances, India stands to gain over Bangladesh.
Indian textile industry is at a turning point. On the one hand China’s export growth in textiles is decreasing. India, riding on cost advantage, has its prominent role in international textile trade. India is also amongst very few countries which have the entire value chain within the country.
Further, following the true spirit of federal competitiveness, several States are coming out with their own policy and incentives scheme for the textile sector, which augurs well with the aim to make India a leading global player in the textile sector. Roll-out of the GST would also greatly help in streamlining the tax structure and improve compliance, she added.
The Secretary appealed to the industry to take full advantage of the special package announced by the Government for the textile sector. She also pointed out that industry needs to increasingly focus on innovation, modernisation and technological advancement to become the world leader in the textile sector.
Stressing the importance of skilling the workforce to become globally competitive, she said: “At least 10 lakh workers need to be skilled every year to meet the demands of the industry and create direct and indirect employment. In a significant development, the Ministry of Labour will soon announce labour reforms allowing fixed-term employment for the textile sector. The Ministry of Textiles is working on the new textile policy which will be announced soon.”
The Indian textile industry must take advantage of the fact that the world leader in textiles, China, is moving away from the sector due to the high cost of production. The Union and State Governments as well as the industry must work in tandem to capture a major share of the world market and occupy the space being vacated by China.
Mr. Debi Prasad Mishra, Odisha Minister for Industries, School & Mass Education, said: “We must work out a clear roadmap through policy facilitation, incentives and structural changes to boost the textile industry in the country. Odisha provides environmental advantage for the sector and stands to gain a great deal from the new initiatives of the Union Government.”
In his address, Mr. R.D. Udeshi, Chairman, CII Texcon 2016, and President – Polyester Chain, Reliance Industries Ltd., said: “We must set up skill centres to achieve efficiency in skilling so as to boost efficiency in the textile sector. The textile industry can greatly benefit from the fibre neutrality”.
Mr. Sachit Jain, Co-Chairman, CII National Committee on Textiles, and Joint Managing Director, Vardhman Textiles Ltd., said: “In the next five years, India stands to gain when the textile industry shifts from China. It can greatly enhance employment from urban to rural areas as well.”
He added: “Indian exporters are well supported by Government schemes such as duty drawback, rebate of State levies, Merchandise Export from India Scheme, Advanced Authorization, Interest Subvention, Market Development Assistance and Market Access Initiative. These initiatives allow Indian exporters to overcome a large part of duty disadvantage they face in markets of the EU and the US where some of the competing nations get a zero duty access.”