'Tech textiles can benefit from existing tax sops for other segments'
The Hindu Business Line , Jan 18, 2017
To foster competition among States, the NITI Aayog has sought data on digital transactions from them within 10 days so that they can be ranked on the basis of initiatives taken to promote less-cash economy. “NITI Aayog will soon rank States on the basis of digital transactions. It has asked the States to submit their digital transaction data within next 10 days,” a senior government official said. Post demonetisation, the government has taken several initiatives to promote digital payments. Last month, to give a big push to cashless transactions, the government had announced daily, weekly and mega awards worth ₹340 crore for consumers and merchants on small digital payments from December 25. Technical textiles — materials used for their technical performance and functional properties — can benefit from some of the existing fiscal sops for the textile industry such as the package for made-ups and apparels announced earlier this fiscal, said Textiles Minister Smriti Irani.
Responding to demands from the industry for fiscal incentives to promote the sector at a curtain raiser for Technotex 2017 — the sixth international exhibition and conference on technical textiles scheduled in Mumbai this April — Irani said her team could advise the industry on how to approach the government benefits.
“Technical textiles like home textiles and clothing textiles would be eligible for benefits under the fiscal package for made-ups and apparels. We can advise the sector on how to approach the government,” Irani said at the event organised by industry body FICCI on Tuesday.
Under the ₹6,000-crore special package for the textile and apparel sector (which was later expanded to include made-ups) announced by the Centre last June, ₹5,500 crore is for an additional five per cent duty drawback for garments and madeups.
The remaining ₹500 crore is for additional incentives under amended Technology Upgradation Funds Scheme (TUFS), where the subsidy provided to garments and made-ups has been increased from 15 per cent for the existing to 25 per cent.
There are about 12 broad categories of technical textiles which include industrial textiles, eco textiles, geo textiles, home textiles, packaging textiles, protective textiles, sports textiles, clothing textiles, agro textiles and construction textiles. Although the domestic industry has been growing steadily from about ₹73,688 crore in 2013-14 to an estimated ₹1,15,217 crore in 2017-18, India comprises just four per cent of global technical textiles exports and three
The Minister pointed out that the textile industry could invest in the NorthEastern States in the area of geo-textiles to avail itself of tax benefits. “The NorthEastern States are helpful and it is easy to set up units there,” she said.
per cent of technical textiles imports.
‘Invest in North-East’
The Minister pointed out that the textile industry could invest in the North-Eastern States in the area of geo-textiles to avail itself of tax benefits. “The NorthEastern States are helpful and it is easy to set up units there,” she said.
Technotex 2017, which is expected to see the participation of more than 200 exhibitors and over 150 foreign buyers, could play an important role in attracting investments.
“We hope that the exhibition plays a role in promoting joint ventures and attract foreign investments in manufacturing of technical textiles and machinery,” said Textiles Commissioner Kavita Gupta.
Irani underlined the need to address the issue of lack of manpower in technical textiles and said that the industry, with the help of experts, needs to first define what the requisite skills were. After defining the skills, the task would be to bridge the gap in which the industry would be supported adequately by the Centre, she said.
The Minister assured the industry that the government would consistently and constantly engage with it to create standards for the technical textiles sector.