Govt rolls out major plans to boost textile sector
04 Aug '05
3 min read
(vii) 100% foreign direct investment is allowed in the textile sector under the automatic route.
(viii) The Government has dereserved the readymade garments, hosiery and knitwear from the SSI sector.
(ix) An Apparel Park for Export Scheme has been launched to impart a focused thrust for setting up of apparels manufacturing units of international standards at potential growth centres and to give fillip to exports. Under the scheme Government gives grants upto Rs. 17 crores per apparel park for infrastructure work, training and common facilities.
(x) Textile Centre Infrastructure Development (TCIDS) Scheme {Centrally Sponsored} has been introduced with the objective of modernizing infrastructure facilities at major traditional textile centres of the country. Government of India gives grant upto Rs.20 crores for a particular centre.
(xi) In order to facilitate modernization of the Powerloom Sector, Schemes such as High-tech Weaving Parks, Modernization and Strengthening of Powerloom Service Centres, Group Workshed Scheme and Credit Linked Capital Subsidy Scheme @ 20% have been introduced.
(xii) To facilitate import of state of the art machinery to make our products internationally competitive in post quota regime, in 2005-06 Budget, the customs duty on textile machinery has been brought down to 10% except 23 items of machinery appearing in List 49, which attract Basic Customs Duty (BCD) of 15%. The concessional duty of 5% continues to be at 5% on most of the machinery items.