The Government has announced a relief package in November, 2007, which reduces basic Customs Duty on certain items relating to textiles sector. Refund of service tax paid by exporters on taxable services linked to exports has been further extended. A support package for providing relief to export sectors, like Textiles, which have low import intensity, was also announced through additional subvention of 2% in pre-shipment and post-shipment credit to the textiles including Ready Made Garments and carpets but excluding man-made fibre.
The Minister also informed that some new initiatives taken by the Government for the growth of textile sector, inter alia, include creation of Investment Regions to consolidate the phenomenon of agglomeration, visible in textiles to further reduce transaction costs and enhance competitiveness; launching of Manpower Development Scheme - known as the "Neighbourhood Apparel & Textile Training Institutes for Job Assurance (NATIJA)" - for establishing a network of employment-linked training facilities to meet the projected demand of 4 million trained workers over the next 5 years; and to revitalize handloom cooperatives on the pattern of agricultural cooperatives.
Necessary action in this regard has since been initiated in consultation with the Planning Commission, Ministry of Finance, etc.
Press Information Bureau Government of India
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