In order to give big boom to the Textile Industry in India, the Union Cabinet has approved a Rs 6,000 crore special package for the Industry. The money shall be used to generate employment and promote exports in the textile and apparel sector. There is the likelihood that this step shall create around 1 crore jobs in three years.
The other improvements in the sector this police involves are labor-friendly measures to create more chances for employment generation, to promote economies and boost exports. It is expected that this step will increase dollar 30 billion in exports. It may also bring investment of Rs 74,000 crore in the upcoming 3 years.
So far the countries like Bangladesh and Vietnam are ahead of India in Textile Industry and related exports. But the target is to exceed them in the next three years. We have provided the highlights/main points of this New Indian Textile Policy for you to read and understand.
Check Some of the Points of this new Textile Policy –
- It’s a labor friendly policy.
- Centre’s contribution to new employees’ income ( less than 15,000 per month) shall be 12% of the employers’ contribution under Employees Provident Fund Scheme.
- If the employees’ income is less than Rs 15,000 per month, it will be optional for them to get the benefit of EPF.
- The employees shall be appointed for the fixed term. They will be considered on a par with the regular employees in terms of salary, working hours, allowance and other dues.
- Refund of state levies be made possible and this move shall cost exchequer Rs 5,500 Crore.
- The Govt has also approved Mega-spectrum auction plan. This action may bring around Rs 5.66 lakh crore to the exchequer. The target is to collect at least Rs 64,000 crore from the auction of about 2300 Mhz of spectrum.
- Another sanction is of Rs 10,000 crore . It is called Fund of Funds for Startups. It will help the industry to generate employment for around 18 lakh people in the Textile Sector.
Such measurements can be seen as good steps to improve conditions in the Textile and Garment Industry in India. The condition so far is very bad. So such steps are very necessary.