STEPS TAKEN FOR INCREASING EXPORTS OF GARMENTS
Government has been
taking several steps from time to time for encouraging exporters
of textile industry including those of knitwear and shawls. Some
of the important initiatives are:-
- The Government has de-reserved
the woven segment of readymade garment from the SSI sector.
It has also announced the dereservation of knitted segment
in the Budget 2002-03.
- The Technology Upgradation Fund
Scheme (TUFS) has been made operational from 1-4-1999 to facilitate
the modernisation and upgradation of this sector so that it
can become more competitive in international trade.
- Weaving, processing and garment
machinery, which are covered under TUFS, have been extended
the facility of accelerated depreciation at the rate of 50%.
Cost of machinery has also been reduced through Fiscal Policy
measures.
- With a view to encouraging backward
integration, the custom duty on shuttleless looms have been
brought to 5%. A programme has also been announced to induct
50,000 shuttleless looms and to modernise 2.5 lakh powerlooms
in the decentralised sector by 2004.
- Foreign equity participation
upto 100% through automatic route has been allowed in the
textile sector with a few exceptions.
- National Institute for
Fashion Technology (NIFT), its six branches and Apparel Training
& Design Centres (ATDCs) are running various courses/programmes
to meet skilled manpower requirements of textile industry
especially apparel in the field of design, merchandising and
marketing.
- To prepare and sensitise the
textile industry (including knitwear and shawls) to conform
to the ecological requirements of importing countries by providing
facilities by way of eco-testing laboratories.
Total amount of duty
drawback paid to exporters under duty drawback scheme was Rs.
4188.89 crores during financial year 2000-01 and Rs. 2675.56 crores
during financial year 2001-02 (upto January, 2002).
