New Delhi, June 22 (IANS) India’s cabinet on Wednesday approved a package for the textiles sector with measures such as tax sops and relaxation of labour laws, with a three-year target of 10 million more jobs, $30 billion additional exports and $11 billion fresh investment.
The package was approved at a meeting of the cabinet presided over by Prime Minister Narendra Modi, which took note of India’s falling share in the global textile exports to Bangladesh and Vietnam, yet with the potential to grab the market being ceded by China.
Briefing reporters later, officials said the package includes full burden of provident fund on government, reduction in yearly working days for calculation of income tax rebate and additional subsidy for machinery under the amended technology upgradation fund scheme.
As per official data, the textiles and apparel sector already contributes 14 per cent to India’s factory output, 4 per cent to its GDP and 13 per cent, or nearly $40 billion, to exports. With 45 million people engaged in it, it is also among the largest sources of employment in the country.
Officials said the new package was mainly aimed at women empowerment since they constitute 70 per cent of the workforce in the garment industry. This apart, the measures are labour-friendly and will create jobs and economies of scale and boost exports, they said