Government plans to make Textile sector more competitive in global market by providing export incentives under schemes like MEIS, Interest Subvention, MDA, MAI, Duty Drawback etc. Further, the special package announced recently is expected to boost competency of textile and apparel exports in international markets.
The seasonal flexibility i.e. increase in overtime limit from 50 hours to 100 hours and introduction to fixed term employment are already addressed by Government in the said special package. Apart from this, Government has taken various pro labour and pro industry initiatives like:
1. Reimbursement of entire 12% employer contribution to EPFO
2. Optional EPF for employees earning less than Rs. 15,000
3. Enhanced duty drawback and subsidy under ATUF for apparel manufacturers
4. Modifications under Section 80JJAA of IT Act
All these initiatives will promote economies of scale and modernisation of all segments in the Textile and apparel value chain.