The Statesman
NEW DELHI, March 9: The Associated Chambers of Commerce and Industry of India (Assocham) has said there is an urgent need to revive textiles and garment industry and urged the government to maximise fiscal policy support and also ensure interest subvention scheme so that the two sectors come out of the current recession.
The weakening rupee against the dollar normally should have given some relief to textile exporters but due to persistent power cuts and sluggish market conditions, textiles and garments continued to be extremely stressed sectors, Assocham said.
Therefore, the government needs to further extend and maximise its fiscal incentives to textiles and garments, especially to fresh investments since investors are still keen to diversify their operations in the two sectors.
From being a sunrise sector, the textile sector is now on the verge of slipping into a stagnant phase. Thus, some more tax concessions should still be extended to textiles and garments so that India is able to retain its competitiveness, especially at a time when these industries are required to keep pace with stiff competition, emerging from India’s neighbour. n SNS
