Knitwear Sector Awaiting INR 170 Crore Package Announcement From Textile Ministry

Trade & Policy

Knitwear Sector Awaiting INR 170 Crore Package Announcement From Textile Ministry

The textile ministry is walking the extra mile to ensure job creation and expansion of the export basket in its sector by reaching out to the finance ministry for effectuating the clearance of a INR 170 crores package for the knitwear sector. It was learnt that the textile ministry wanted the clearance to be obtained at the earliest.

According to senior ministry officials, “Textiles being a labour intensive sector, we basically require to ensure that investments in our sector are boosted and this in turn enhances job creation. Besides, when our domestic industrialists are able to compete favourably in the international market, it serves the purpose for the investors as well as the large labour force.”

It was reliably learnt from this ministry source that the awarding of the financial package is delayed over the issue of monetary resources required for making the allocation. Currently, the talks are on between the textile ministry and the finance ministry to sort out the details.

According to norms there is no requirement for a cabinet approval for allocations below the INR 200 crore mark. As the required allocation is only INR 170 crore, the finance ministry can directly clear the allocation. At present, the textile ministry is awaiting the nod from the finance ministry to announce the package to the knitters.

The textile ministry is currently actively pursuing the goal of procuring financial assistance close on heels of the centre declaring that it plans to create one crore jobs in the textile and apparel sector within the next three years. The textile ministry’s current move is in addition to its initiative to grant such sops to the apparel and made-ups sector. These included towels and decorative cotton products.

The ministry official clarified that knitwear also comes under the category of finished products and thus they deserve the same treatment as meted out to made-ups and apparels. Earlier, the textile industry had left out the knitwear sector from the slew of packages it had announced. The knitwear industry mainly comprises small and medium entrepreneurs. The knitwear exporters also pitched in stating that the ministry’s move is welcome and eagerly awaited as this will serve to take some of the burden off their backs especially after the announcement of goods and services tax.