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Indian Textile sector showing signs of recovery: CITI

Updated: Jun 30, 2018 10:13:00am

Indian Textile sector showing signs of recovery: CITI

New Delhi, June 30 (KNN) With the depreciation of rupee, pick up in domestic demand and progressive policies by government, the textile and apparel sector of India is finally showing some positive signs of recovery.

The above statement was made by Confederation of Indian Textile Industry (CITI) Chairman Sanjay Jain.

He said the sector which passed through a challenging phase post demonetization, implementation of Goods and Service Tax (GST), rupee appreciation and high domestic cotton prices, is finally showing some signs of recovery.

"Recovery is expected owing to rupee depreciation, picking up of domestic demand and progressive policies of the government," CITI said.

According to Jain, the support extended by the government, including Rs 1,300 crore Samarth scheme for skilling, Rs 6,000 crore packages for apparel and made-ups along with various state incentives, is expected to create a strong turnaround in textiles and clothing sector, and put the industry back on growth path.

Also to make the sector more healthy and prosperous, Policy support by the government is urgently needed for stopping excess imports and refund of all duties and taxes on exports across the value chain, he added.

"In the financial year 2018, the imports of textiles and apparel have touched USD 7 billion, which is 16 per cent higher than the last year value of USD 6 billion," he said.

Terming non refund of embedded duties as one of the key factors for decline in exports apart from blockage of funds due to delay in GST refunds, he said that embedded duties in the range of 4 to 6 percent across the value chain are not getting refunded.

He said the biggest game changer that could transform the industry and put it at par with competitors such as Vietnam and Bangladesh is a free trade agreement with EU, Australia, Canada and Britain for made-ups and garments.


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