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Big boost for textile sector: Govt approves special package for employment generation & promotion of exports
Govt plans to generate one crore jobs in the textile and apparel industry over next 3 years
Textile sector: Govt efforts to lead to a cumulative increase of US $ 30 billion in exports
Centre plans to invest ₹ 74,000 crores over next 3 years into textile sector
Govt's special package for textile sector a boon for women workforce on the country

The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given approval for a special package for employment generation and promotion of exports in Textile and Apparel sector.

The move comes in the backdrop of the package of reforms announced by the Government for generation of one crore jobs in the textile and apparel industry over next 3 years. The package includes a slew of measures which are labour friendly and would promote employment generation, economies of scale and boost exports. The steps will lead to a cumulative increase of US$ 30 bn. in exports and investment of Rs. 74,000 crores over next 3 years.

The majority of new jobs are likely to go to women since the garment industry employs nearly 70% women workforce. Thus, the package would help in social transformation through women empowerment.

Salient features of the package announced are: 

Employee Provident Fund Scheme Reforms

 

  • Govt. of India shall bear the entire 12% of the employers’ contribution of the Employers Provident Fund Scheme for new employees of garment industry for first 3 years who are earning less than Rs. 15,000 per month.
  • At present, 8.33% of employer’s contribution is already being provided by Government under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY). Ministry of Textiles shall provide additional 3.67% of the employer’s contribution amounting to Rs. 1,170 crores over next 3 years.
  • EPF shall be made optional for employees earning less than Rs. 15,000 per month
  • This shall leave more money in the hands of the workers and also promote employment in the formal sector.

 

  1. Increasing overtime caps
  • Overtime hours for workers not to exceed 8 hours per week in line with ILO norms.
  • This shall lead to increased earnings for the workers

 

  1. Introduction of fixed term employment 
  • Looking to the seasonal nature of the industry, fixed term employment shall be introduced for the garment sector
  • A fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowanced and other statutory dues.

 

  1. Additional incentives under ATUFS
  • The package breaks new ground in moving from input to outcome based incentives by increasing subsidy under Amended-TUFS from 15% to 25% for the garment sector as a boost to employment generation.
  • A unique feature of the scheme will be to disburse the subsidy only after the expected jobs are created.

 

  1. Enhanced duty drawback coverage
  • In a first of its kind move, a new scheme will be introduced to refund the state levies which were not refunded so far.
  • This move is expected to cost the exchequer Rs 5500 crores but will greatly boost the competitiveness of Indian exports in foreign markets.
  • Drawback at All Industries Rate to be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme

 

  1. Enhancing scope of Section 80JJAA of Income Tax Act
  • Looking at the seasonal nature of garment industry, the provision of 240 days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry

 

PPT on Textile and Apparel Sector Reform Package :

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Prime Minister participates in the first Outreach Session of G7 Summit
June 12, 2021
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Prime Minister Shri Narendra Modi participated in the first Outreach Session of the G7 Summit today.  

The session, titled ‘Building Back Stronger - Health’, focused on global recovery from the coronavirus pandemic and on strengthening resilience against future pandemics. 

During the session, Prime Minister expressed appreciation for the support extended by the G7 and other guest countries during the recent wave of COVID infections in India. 

He highlighted India's ‘whole of society’ approach to fight the pandemic, synergising the efforts of all levels of the government, industry and civil society.   

He also explained India’s successful use of open source digital tools for contact tracing and vaccine management, and conveyed India's willingness to share its experience and expertise with other developing countries.

Prime Minister committed India's support for collective endeavours to improve global health governance. He sought the G7's support for the proposal moved at the WTO by India and South Africa, for a TRIPS waiver on COVID related technologies. 

Prime Minister Modi said that today's meeting should send out a message of "One Earth One Health" for the whole world. Calling for global unity, leadership, and solidarity to prevent future pandemics, Prime Minister emphasized the special responsibility of democratic and transparent societies in this regard. 

PM will participate in the final day of the G7 Summit tomorrow and will speak in two Sessions.