Govt should encourage private equity in textile sector: Assocham
Private equity funds need to be encouraged to partner with textile units in India to facilitate flow of investments for capacity expansion and modernisation in the rupee-hit sector.
By PTI |
NEW DELHI: Private equity funds need to be encouraged to partner with textile units in India to facilitate flow of investments for capacity expansion and modernisation in the rupee-hit sector, industry body Assocham on Wednesday said.
The textile sector is suffering from rigid labour laws, obsolete technology, fragmented structure and infrastructure constraints, which have hampered its growth and competitiveness in the global market, the chamber said in its report on Indian Textile Sector.
"The government can kickstart fresh investments in the industry by declaring tax holidays for foreign and domestic players investing in the textile machinery segment," Assocham President Venugopal Dhoot said.
He said the government should provide appropriate fiscal incentives to parties interested in investing in textile and clothing sector in the country.
A huge gap exists between domestic demand and supply of textile machinery, which is leading to production inefficiencies, it said.
Mergers and acquisition in the sector would also facilitate investment, technology modernisation and market expansion.
The chamber further said textile SEZs would help in growth of the sector by providing better pricing option, brand promotion and penetration in international markets.
The textile sector is suffering from rigid labour laws, obsolete technology, fragmented structure and infrastructure constraints, which have hampered its growth and competitiveness in the global market, the chamber said in its report on Indian Textile Sector.
"The government can kickstart fresh investments in the industry by declaring tax holidays for foreign and domestic players investing in the textile machinery segment," Assocham President Venugopal Dhoot said.
He said the government should provide appropriate fiscal incentives to parties interested in investing in textile and clothing sector in the country.
A huge gap exists between domestic demand and supply of textile machinery, which is leading to production inefficiencies, it said.
Mergers and acquisition in the sector would also facilitate investment, technology modernisation and market expansion.
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The chamber further said textile SEZs would help in growth of the sector by providing better pricing option, brand promotion and penetration in international markets.
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