SEZ for textile sector to be established by Italians
08 Nov '06
1 min read
Italian businessmen are interested in establishing textiles Special Economic Zone (SEZ) in India and also want to launch single brand outlets to enter fashion retailing.
FICCI President Saroj Poddar said fashion designers of Italy are searching ways to use the country as back office for designing, manufacturing and marketing purposes.
Both countries had consented on enhancing two-way commerce to $10 billion by 2009 from the current $4.3 billion. Commerce Minister Kamal Nath has taken an official delegation to Italy for finding fresh business scopes and increasing bilateral trade.
Textile Ministry of India is trying to obtain SEZ benefits for 26 industrial parks being constructed under a policy for integrated textile parks.
If textile parks are awarded SEZ status, companies could get benefits like 15 year tax holiday, 100 percent income tax exemption for first 5 years, 50 percent for next 5 years, cent percent exemption on profits for last five years, service tax exemption and zero duty on capital goods.
Ministry sources informed that products made in the parks can be sold in local markets or exported outside. Parks will be given SEZ benefits if they generate heavy exports.
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