New Delhi, June 23 (KNN) The government announced a package of incentives that provides for more flexible labour laws and financial support through government bearing on 12% employer’s contribution under the EPF scheme for new hands hired by the industry, earning less than Rs 15,000 a month for the first three years.

This package worth Rs 6,000 crore hopes to generate one crore new jobs in three years, attract Rs 74,000 crore investment and generate USD 30 billion in export earnings.

Animesh Saxena, Managing Director of Neetee Clothing,while talking to KNN about the nuances of this package of incentives revealed the fact that though it will boost the employment in textile sector due to relaxations in ILO norms tending  to fix overtime hours to eight hours making it more attractive for workers .

“But all this is not a ‘major relief’ or a revolutionary step to revive the textile sector”, Saxena added.  According to him, there are a whole lot of other issues, acting as a backlog and hampering the overall fillip to the sector, to be dealt by the authorities.

Indian textile industry facing international competition is not able to currently compete with the neighbouring countries like Bangladesh, Myanmar, Cambodia due to high import duties and cost of production here.

India faces a major disadvantage as far as large European market is concerned wherein there are  import duties of around 11% FOR India whereas Bangladesh is duty free and  Pakistan has advantage in import duties.

“Secondly, Government of India’s Foreign Trade Agreement (FTA) with  Europe is still not signed due to which Indian garment  export is at disadvantage  as compared to other countries, ” he added.

Moreover, the National Textile Policy is not still revised by the Textile Ministry which continues procrastinate the release of the revised policy, he mentioned.

So, until and unless all such issues are addressed the textile industry cannot revive the way it is expected by the central government. Specific steps in this direction are the need of the hour as explained by the experts. (KNN Bureau)