Reforms For Domestic Apparel Sector
To encourage the domestic apparel sector to compete with multinational brands, Government announced key reforms under a Special Package that includes additional incentives under the Amended Technology Upgradation Fund (ATUFS), relaxation of Section 80JJAA of Income Tax Act and introduction of fixed-term employment for the apparel sector. Under Pradhan MantriRojgarProtsahanYojana (PMRPY), Government is providing entire 12% of employer’s contribution towards Employee’s Provident Fund (EPF) and Employee’s Pension Scheme (EPS). Further, to make the apparel sector competitive, the Government is providing a rebate of State and Central taxes/ levies embedded in manufacturing.
India’s traditional textiles and synthetic materials cater to different domestic market segments. Traditional textiles and fabric are primarily cotton focused and cater to niche markets. In India, import of synthetic fabric is approximately 30% of domestic production of traditional textiles.
Share of imported apparel with respect to domestic apparel market in India is nearly 1.4%.
This information was given by the Union Minister of Textiles, Smriti Zubin Irani, in a written reply in the Lok Sabha.