Cabinet approves textile policy; aims at job creation, manufacturing and exports

Cabinet on Wednesday approved textile policy which will provide incentives the sector and aid in job creation, manufacturing and exports.

Government announced that the policy will strengthen employment in the country. The policy is aimed at creating one crore jobs over the next 3 years, following labour friendly measures such as initiation of fixed term employment and enhancing duty drawback to push textile and apparel exports.

To lead cumulative increase of $30 billion in exports, the Cabinet said that the Government will invest around Rs 74,000 crore in the sector over next three years.

Further, the government  has approved special package for employment generation & promotion of exports in Textile & Apparel sector.

In “regards to women empowerment, It said, “Majority of new jobs  for women as garment industry employs 70% women workforce, would help in women empowerment.”

To boost employement, Government has decided to bear the entire 12% Employee Provident Fund Scheme contribution of an employee. Number of working days will also be reduced from 240 to 150 under section 80JJAA of Income Tax act. 

#Cabinet approves tax and production incentives for job creation in garment manufacturing sector pic.twitter.com/hObcxQD5BU

— Frank Noronha (@DG_PIB) June 22, 2016

With policy support, India can regain its position in apparel exports in three years #Cabinet pic.twitter.com/sg9W1cEML3

— Frank Noronha (@DG_PIB) June 22, 2016

A slide showing the untapped potential of the #textile and apparel sector in India pic.twitter.com/wThwcvJFWM

— Frank Noronha (@DG_PIB) June 22, 2016