Government announces many 'key reforms' to boost domestic apparel sector
Union Textile Minister Smriti Irani said that the government has relaxed the Sections of Income Tax Act and announced key reforms under a special package.
NEW DELHI: Union Textile Minister Smriti Irani on Friday said the central government announced many "key reforms" such as relaxation of Sections of Income Tax Act and incentives to boost the domestic apparel sector to enable it to compete with multinational brands.
"To encourage the domestic apparel sector to compete with multinational brands, government announced key reforms under 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," a press release by the PIB read.
The press release added that a written reply submitted by Irani in the Lok Sabha today cited that the government is providing the whole 12 per cent of employer's contribution towards Employee's Provident Fund and Pension Scheme.
"Under 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 a rebate of State and Central taxes/ levies embedded in manufacturing," it read.
It went on to add that in India traditional textiles and synthetic materials cater to different segments in the domestic marker and synthetic fabric's import is 30 per cent of the production of traditional textiles.
"India's 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," it read.
It said, "The share of imported apparel with respect to domestic apparel market in India is nearly 1.4 per cent."