Textile Industry is struggling for survival, a relief package from government is the need of the hour
The Indian textile industry has urged the government to provide them with a relief package soon as the sector is undergoing tough times due to crash in prices of yarn, declining demand both in domestic and international markets, withdrawal of export incentives and constraint with repayment of loans and interests.
CITI Chairman Shishir Jaipuria said that DEPB and drawback on exports of cotton yarn should be restored immediately with effect from the dates of their discontinuance. Also, the restoration of interest subvention of 4.5 percent on export of textiles and clothing is requisite.
Further, he reiterated to withdraw excise duty of 10 percent imposed on the branded garments and clothing in the last Budget in order to stimulate the consumer demand.
CITI also proposed the government for moratorium of additional two years on repayment of all loans and interest to be allowed including TUFS loans for all units in textiles and clothing industry.
And, the reduction of margin money for purchases of cotton to 10 percent are the other relief measures, which the government should provide to the industry, CITI suggested.