The Textile Ministry is expecting the Finance Ministry to clear Rs. 170 cr special package for the knitwear sector at the earliest as it is an employment intensive sector so any effort to boost investment will boost job creation and lift sagging exports. The knitwear industry, which mainly comprises small and medium enterprises, was left out in the earlier scheme of things. Exporters believe that the package can ease the pain especially after the goods and services tax rollout.
The official said that the consultation bet-ween the Textile and Finance Ministry is currently stuck on the issue of the monetary resources needed for the package, amounting to around Rs. 170 cr. The package will be announced as soon as the finance ministry gives its go-ahead, as no Cabinet approval was needed for the proposal entailing less than Rs. 200 cr. The move comes in the backdrop of the reforms announced by the government for generation of one crore jobs in the textile and apparel industry over next three years. The Textiles Ministry had earlier rolled out similar plans for the apparel as well as the made-ups, which includes towels and decorative cotton products etc. The official said that they have given it to apparel and made-ups, knitwear is also a finished product, so its natural that a package for it is being finalized.
