New Delhi, Jun 29 (PTI) The country's textiles and apparel sector is showing signs of recovery owing to rupee depreciation, pick-up in domestic demand and progressive policies of the government, Confederation of Indian Textile Industry said today.
CITI Chairman Sanjay Jain said the sector which saw a major hit due to demonetisation, implementation of GST, rupee appreciation and high domestic cotton prices, is finally showing some signs of recovery.
"Recovery is expected owing to rupee depreciation, picking up of domestic demand and progressive policies of the government," CITI said.
According to Jain, the support extended by the government, including Rs 1,300 crore Samarth scheme for skilling, Rs 6,000 crore package for apparel and made-ups along with various state incentives, is expected to create a strong turnaround in textiles and clothing sector, and put the industry back on growth path.
He further said policy support by the government is urgently needed for stopping excess imports and refund of all duties and taxes on exports across the value chain.
"In the financial year 2018, the imports of textiles and apparel have touched USD 7 billion, which is 16 per cent higher than the last year value of USD 6 billion," he said.
Moreover, Jain cited that embedded duties, which are in the range of 4 to 6 per cent across the value chain are not getting refunded, terming it as is one of the key factors for decline in exports apart from blockage of funds due to delay in Goods and Service Tax (GST) refunds.
He said the biggest game changer that could transform the industry and put it at par with competitors such as Vietnam and Bangladesh is a free trade agreement with EU, Australia, Canada and Britain for made-ups and garments.
He stated that he is very optimistic that government will intervene in the matter and continue to support the textile industry.
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI