Union Textile Minister Smriti Irani stated at the Texprocil Export Award Function that another special package for made-ups and home textile sector, similar to Rs 6,000-crore special package announced for the garment sector, is under active consideration of the ministry.
She stated that Prime Minister Narendra Modi has a vision to double the income of farmers by 2022. "We are happy that farm yield has already increased and the country hopes to become a leading producer of cotton,” she said.
Later, she distributed awards for excellence in exports of yarns, fabrics and home textiles. Leading textile companies like Welspun Global Brands Ltd, Vardhman Textiles, Trident Ltd, Alok Industries, Arvind Ltd, Loyal Textiles, GTN Textiles, Premier Mills, Paramount Textiles, SEL Group and Lahoti Overseas among others received awards.
In his opening remarks, Texprocil Chairman R K Dalmia said that as per a recent World Trade Organisation (WTO) forecast, global trade volumes would increase only by 1.7% this year. This would be the slowest increase since the 2008 financial crisis and also the first time in 15 years that global trade has grown more slowly than the world GDP, he said.
Complimenting the government on the announcement of the special package of Rs 6,000 crore for the apparel sector, he said that the package is bearing fruit since the September export figures for apparel has shown a growth of 12% compared to a downward trend for most other sectors.
He stressed that the special package should also be extended to the made-ups and home textile sector since that sector is equally, if not more labour intensive as compared to the apparel sector. He also said that it would act as a pull factor for increased consumption of fibre, yarns and fabric produced domestically.
Another critical area where the Government needs to move with vigour is to expedite the negotiation of free trade agreements with European Union, Australia and Canada, he said.
He said that in countries like Turkey and China, high discriminatory tariff pose a challenge in terms of market access.
Cotton textiles are the single largest contributor accounting for almost 20% of India’s exports to China and if duties are reduced, it has the potential to reduce India’s trade deficit with China, he said.
He highlighted the often repeated request of the industry that raw materials, especially cotton, should be available at international prices or lower.
He also mentioned that the spinning sector which is going through rough times is looking up to the government for help and support.
Inclusion of cotton yarn in the Merchandise Exports from India (MEIS) scheme and extending the interest equalisation scheme to merchant exporters would go a long way in reducing stress levels in the spinning sector as well as increase exports , he said.