Development and modernization of the textile sector in the North-Eastern States is being given the highest priority by the Ministry of Textiles with the main objective of creating more jobs, especially for women of that region, and also enhancing the infrastructure facilities of the States like roads, power, water supply and construction of offices.
Addressing the newsmen to explain different Budget features for the sector, Ms. Smriti Zubin Irani, Textiles Minister, said that there are 23.77 lakh handlooms in the country, of which 16.47 lakhs are in the North-East region as per the handloom census of 2009-10.
Twenty-one ready-made garment manufacturing units are fully operational in the 7 States in the region: Assam, Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Mizoram and Tripura. These units have given a special boost to the regional textile industry which has seen an increase in the exports of ready-made garments. Further, Rs. 690 crores has been utilised for the development of sericulture in the region.
Three factories have become fully operational in each of the seven States in a record time of two years. Each factory employs around 1,200 people, mainly women. The factories are owned by local entrepreneurs and agencies like the Clothing Manufacturers Association of India. Arvind Mills and the Apparel Export Promotion Council are regularly placing orders for ready-made garments with these units. The specific objectives of the Ministry are to increase the value of textile production, technological upgradation, improvement in capability, better access to domestic markets and clusterization.
She said the Textile Ministry has further provided Rs. 18 crores to each readymade garment manufacturing unit called “Apparel Garment Unit” (AGU). The National Building Construction Corporation has constructed the units in theses 7 States. The garments manufactured here are being exported not only to other parts of the country but to neighbouring countries as some North-East States have trade ties with Bangladesh and Myanmar.
Reclassification of MSMEs
Ms. Irani further said that reclassification of MSMEs and 5 per cent reduction in tax on the annual turnover of companies up to Rs. 250 crores will help manufacturing and increase employability in the textiles sector. The increase in customs duty on silk and man-made fibres will discourage cheap Chinese textile products from flooding the market and benefit domestic manufacturers in the powerloom sector.
Of the Rs. 6,000-crore special package, which was announced in 2016 for the textiles sector, Rs. 1,800 crores have already been released and Rs. 300 crores will be released in the current financial year.
She also spoke about 100% increase in allocation for skills development in the textiles sector. The correction in the GST rates on hand-made and machine-made garments has facilitated ease of doing business in these sectors.
The Minister said the GST rate has been reduced on yarn from 18% to 12% and that on job work has been brought down from 18% to 5%. Support for the merchandise scheme has been enhanced from 2% to 5% for the apparel sector.
Ms. Irani attributed 16 per cent growth in the apparel sector to the effective implementation of subsidy schemes. An amount of Rs. 138 crores has been disbursed to 28,000 weavers as Mudra loan and 1.8 lakh garment workers have formally joined the Employees Provident Fund Organisation (EPFO).