Union Minister of Commerce Approves Package For Textile Sector

5 min read
Textile Sector

Commerce and Industry Minister, Nirmala Sitharaman approved approximately 6,000 crores INR package for Textile and Apparel Industry in a move to attract human resource thus helping in creating more jobs. The following measure is in the form of incentive package which is likely to be distributed among a various segment of the Industry. The announcement was made today on June 23, 2016, here in New Delhi.

The extra push towards an increase in exports would help textile and apparel industry to gain due to various global developments. An approved package of worth Rs. 6,000 crores help assist in achieving the goal. The ultimate aim to create jobs along with attracting investment from foreign entities worth 11 billion USD out of 30 billions USD of the total amount.

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Earlier in 2014-15, the export price settled to $17 billions, but in present fiscal year investment of such enormous amount would help in generating more resources thus, ultimately creating profit out of it. The respective sector in which investment procured is huge competition. Countries like Bangladesh, Vietnam, etc. have greater access to other nations within lower tariff rates. Also, India has an agreement with the European Union to have free trading installed a few years before. How-so-ever, the UK going through a moment of “Brexit” i.e.possible exit of Britain from the European Union, a trade might suffer in varies segments.

According to Nirmala Sitharaman, It is a sector where India has gained a lot of advantage … It has a great potential for job creation.We will be observing the developments. We are waiting for the dates. It is my doubt that if because they are waiting for the outcome of Brexit, they have not yet given the dates as yet. The moment they give the dates, we will be keenly wanting to continue the talks to reach the conclusion at the earliest. At present, it is too early for me to comment.

The respective pact for India-EU free trade collaboration significantly aims at reducing tariff or in some cases removing the tax on certain goods and items thus felicitating trade services as well as encouraging investments from both the nations. The pact subjugates in June 2007 but rather went on facing lot of disapproval. The negotiation for proposed agreement faced various obstacles which consisted of major issues hence creating a lot of differences between the two nations. The following matters includedliberal visa regime, duty cut in automobile and spirits and intellectual property rights.

In the recent event, electronic giants Apple Inc. showed interest in opening a single brand retail store in India. The statement came from US headquarters right after the announcement of changes in FDI policies. The respective proposal is still to be evaluated by the Union Minister.

As per Government of India, the foreign conglomerates will be exempted from such rules and norms as they tend to bring state-of-the-art technology in the single brand retail segment for almost three years. The pivotal mandatory local sourcing norms subjected under terms and regulations for respective big companies most preferably Apple Inc.

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