Textile sector continues to be attractive

The government’s decision to develop a trademark for handloom may be the only direct mention of the textile industry in the trade policy statement. However, the sector continues to enjoy indirect gains.

Major attractions for the textile sector include: new Export Promotion Capital Goods (EPCG) scheme, continuation of Duty Entitlement Pass Book (DEPB) scheme, notifying the Target Plus Scheme and putting on hold tax recoveries from exporters on DEPB licences.

Garment exporters have taken a sigh of “The timely announcement about putting on hold all actions by the income tax (IT) authorities due to misinterpretation of the Section 80HHC of the Income Tax Act is a major relief,� Apparel Export Promotion Council (AEPC) chairman A Sakthivel said.

“The changes incorporated under EPCG scheme for incentivising exporters on fast track is a welcome step and would definitely encourage exporters to perform better,� he added.

Commenting on the policy Rajasthan Spinning & Weaving Mills joint MD Riju Jhunjunwala said: “Two points of paramount importance for the textile sector has been addressed. The continuance of the DEPB scheme will help exporters to become more competitive as they were fearing that DEPB would be discontinued. Secondly, the exporters will be able to take advantage of the Target Plus scheme. It was announced two years ago but was not put into effect.�