Textile industry Associations in Coimbatore region today hailed the revision of duty draw back rates and values caps by the Centre, saying they were confident of achieving further growth in the garment sector.
Welcoming the move, Indian Texpreneurs Federation (ITF) secretary Prabhu Damodaran said that by the timely support,the industry was confident of achieving further growth in the garment sector.
Importance to Man Made Fibre based yarn and fabrics would be a morale booster to industry to focus more on MMF based value added products, he said, adding that this would raise competitiveness in the global apparel market.
Southern India Mills' Association deputy chairman P Nataraj thanked the Government, particularly minister of State for Commerce and Industry Nirmala Sitharaman and the Chairman of Duty Drawback Committee, Dr Saumitra Chaudhri for enhancing the drawback rates and value caps for various value added products like yarn counts in 100s and above, fabrics with less than 200 grams per square metre, knitted and woven garments.
The attractive rates given for certain value added products would encourage the textile industry to give more focus for value addition which would generate more foreign exchange, he said.
However, he said the marginal reduction in the normal products in the drawback rates and value caps could have been avoided considering the crisis being faced by the industry.
Pointing out that the revised rate also encourage the industry to follow the Cenvat route to prepare the industry for the forthcoming new levy GST, Nataraj said that when the exports opt for Cenvat facility, they would get enhanced rate and value.
