Minister of State for Textiles, Shri E.V.K.S. Elangovan says in the atmosphere of liberalization, the imports are governed by market forces subject to export-import policy in force from time to time. Presently, India's textile imports are not significant, and are less than 16 percent of textile exports.
The Government has imposed a combination of ad-valorem and specific duty on 'whichever is higher basis' on import of number of textiles and clothing items to safeguard the interests of domestic industry from cheap imports. In addition, the Government has been taking continuous measures to safeguard the interests of the industry and to boost textile exports. Some of the important initiatives taken in this regard are as follows:
i) 100 percent Foreign Direct Investment is allowed in the textile sector under the automatic route.
ii) The Government has de-reserved the readymade garments, hosiery and knitwear from the SSI sector.
iii) The Technology Unpgradation Fund Scheme (TUFS) has been made operational from 1-4-1999 to facilitate the modernization and upgradation of the sector.
iv) A new Scheme namely “Scheme for Integrated Textile Parks” has been formulated by merging “Scheme for Apparel Parks for Exports” and “Textile Centre Infrastructure Development Scheme” in order to expand the production base of textile and garment sector. The Scheme envisages to create 25 Textile Parks of international standard at potential growth centersof India by 2007-08.
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