Tax rebates aiding domestic textile sector to compete with MNC brands: Irani
Published: Jun 21, 2019
By TIOLCORPLAWS News Service
NEW DELHI, JUNE 21, 2019: THE Union Minister for Textiles, Ms Smriti Zubin Irani, today in Parliament stated that the Government had taken a host of measures to encourage the domestic apparel sector in order to help it compete with multi-national brands. Such measures include a Special Package that includes additional incentives under the Amended Technology Upgradation Fund (ATUFS), relaxation of Section 80JJAA of Income Tax Act and introduction of fixed term employment for the apparel sector.
Besides, under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), the Government is providing entire 12% of employer's contribution towards Employee's Provident Fund (EPF) and Employee's Pension Scheme (EPS). Further, to make the apparel sector competitive, Government is providing rebate of State and Central taxes/ levies embedded in manufacturing. Indian traditional textiles and synthetic materials cater to different domestic market segments. Traditional textiles and fabric are primarily cotton focused and cater to niche markets. In India, import of synthetic fabric is approximately 30% of domestic production of traditional textiles.
Share of imported apparel with respect to domestic apparel market in India is nearly 1.4%.