The Southern Gujarat Chamber of Commerce and Industry (SGCCI) and the textile task force advisor SP Verma attended the meeting of the Parliamentary Industry Committee held at the Parliamentary Annexe Building of the Parliament House, New Delhi and presented in detail various key issues in the interest of the textile sector.
SGCCI Vice-President, Ashok Jirawala and S.P. Verma presented before the Parliamentary Industry Committee that it is necessary to take immediate steps by the government to address the challenges faced by the textile MSME industries due to US tariffs.
Jirawala specifically told the committee that restrictions on raw materials (such as MMF fibre and filament yarn) and machines falling under QCO, which are not manufactured or available in sufficient quantities in India, should be removed. Anti-dumping duty currently applicable on MMF yarn or its raw materials (MEG and PTA) and viscose yarn should be removed. Duty on MEG and PTA should be reduced so that MMF yarn can be available at cheaper rates.
Export incentives should be increased to promote exports to the US so that MSME industries can face US tariffs. Countries with high population and purchasing power should be identified and a detailed report on the demand for textiles and apparel should be prepared by the government in the next three months and given to all textile clusters so that they can prepare samples and products as per the demand of the respective countries.
Indian Embassies should be directed to provide hand-held support to increase exports to the concerned countries. A legal via route should be suggested for textile manufacturers through which they can legally supply to the US market. Assistance like increase in RoDTEP rate, 10% duty drawback, and 5% interest reimbursement for exports to the US should be provided through Export Credit Guarantee Corporation of India (ECGC).
In addition, it was proposed that a two-year moratorium on payment of capital for MSME industries in the textile sector and a 30% collateral-free loan facility should also be provided through ECGC.
Ashok Jirawala and S.P. Verma, who is the former additional textile commissioner, while giving a detailed explanation before the Parliamentary Industry Committee, said that the tariffs imposed by the US are having a serious impact on MSME industries. If the government takes necessary steps in a timely manner, the textile industries of the entire country, including Surat, will get great protection and there will be stability in exports.
