The Minister of State for Textiles, Shri E.V.K.S. Elangovan, informed the Lok Sabha in a written reply to a question by Shri M.P. Veerendra Kumar that the Government has been taking a number of steps to boost textiles and garment production and exports. Some of the important initiatives taken in this regard are as follows:-
• 100% Foreign Direct Investment is allowed in the textiles sector under the automatic route.
• The Government has de-reserved readymade garments, hosiery and knitwear from the SSI sector.
• The Technology Upgradation Fund Scheme (TUFS) has been made operational from 1-4-1999 to facilitate the modernisation and upgradation of the sector.
• A new “Scheme for Integrated Textile Parks” has been formulated by merging the “Scheme for Apparel Parks for Exports” and the “Textiles Centre Infrastructure Development Scheme”, in order to expand the production base of the textiles and garment sector.
• The fiscal duty structure has been generally rationalized to achieve growth and maximum value addition within the country. Except for mandatory excise duty on man-made filament yarns and man-made staple fibres, the whole value addition chain has been given the option of excise exemption.
• The import of specified textiles and garment machinery has been allowed at a concessional rate of customs duty to encourage investment and to make our textiles product competitive in the global market. The cost of machinery has also been reduced through fiscal policy measures.
• 100% Foreign Direct Investment is allowed in the textiles sector under the automatic route.
• The Government has de-reserved readymade garments, hosiery and knitwear from the SSI sector.
• The Technology Upgradation Fund Scheme (TUFS) has been made operational from 1-4-1999 to facilitate the modernisation and upgradation of the sector.
• A new “Scheme for Integrated Textile Parks” has been formulated by merging the “Scheme for Apparel Parks for Exports” and the “Textiles Centre Infrastructure Development Scheme”, in order to expand the production base of the textiles and garment sector.
• The fiscal duty structure has been generally rationalized to achieve growth and maximum value addition within the country. Except for mandatory excise duty on man-made filament yarns and man-made staple fibres, the whole value addition chain has been given the option of excise exemption.
• The import of specified textiles and garment machinery has been allowed at a concessional rate of customs duty to encourage investment and to make our textiles product competitive in the global market. The cost of machinery has also been reduced through fiscal policy measures.
