India’s synthetic fibre and fibre intermediate produces will be happy to know that the textile industry is likely to soon receive a number of incentives from the government. A stimulus package, due to be announced next month, would include subsidies on interest and additional funds for technology upgradation, says this report.
This is needed as other incentives announced by the government earlier this year have failed to revive the industry, says the Confederation of Indian Textile Industry
Textile exports have been declining since September 2008 and industry players have complained that the Indian government has not matched efforts put in by governments in China, Pakistan and Bangladesh to support local producers.
India’s textile exports in fiscal 2009 were estimated to be around $22bn, a long way from the government target of $110bn in fiscal 2012.
The new textile minister appreciates the huge task facing the industry. He said recently that the industry needed an annual investment of Rs300bn to maintain growth momentum. He has promised a helping hand from the government – something that the industry has been seeking for a very long time.