FICCI pursues special textiles package
The Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed deep concerns about profitability and investment in the Indian textile industry and is now seeking a special textiles package to help the industry survive the current economic crisis.
According to FICCI, the sector’s profitability fell by more than 99% in the April to June quarter and investment has been less than a third of the amount spent last year during the same period. It claims that other countries, including Pakistan, are bailing out their textile sectors.
The package it is demanding asks, among other things, a one-year freeze on loans, increased drawback rates; export credit at international rates; extension of the Sunset Clause for EOUs for five years; the release of pending funds from last year under TUFS; a reduction of excise duty on manmade fibres; and 10% import duties on manmade fibres.
FICCI claims that growth within the country’s textiles industry has fallen from 8% in April-August 2005-06 to just 0.8% this year.
