In view of the adverse effects that the appreciating rupee has had on the country's textile exports, the Government is planning a special incentive package whereby a 10-percent capital subsidy, in addition to a 5-percent interest reimbursement for the garment sector, will be given to textile manufacturing units.
Sources said the plan has got the Finance Ministry's nod and is awaiting Cabinet clearance. These sops are likely to benefit the country's major garment players since garment exports have recorded a growth of just 1.12 percent in 2006-07.
To give a boost to exports of value-added products, technical textile units may be included in the ambit of the 10-percent capital subsidy.
Unlike conventional textiles used for clothing or furnishing purposes, technical textiles are mainly used in agriculture, automobile, aviation, chemical, civil engineering construction, medical and environmental protection, packaging and printing industries.
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