Taking a mega leap, foreign direct investment (FDI) inflow in India’s textile sector surged more than double to $618.95 million during the financial year 2016-17 (FY17) as against of $230.13 million in the previous financial year (FY16). The sector has received $21.41 million foreign inflows in first two months of current financial year.
To enhance investment, production and export in the textile sector, the government has launched a special package for the apparel and made-ups segments of the industry. The package includes enhanced duty drawback coverage, rebate of state levies on export of garments and made-ups, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS) and Scheme for Production and Employment Linked Support for Garmenting Unit Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRPY) and incentives under the Income Tax Act.
Meanwhile, as per data provided by Ministry of Textiles, the export of textiles and clothing including handicrafts also increased marginally to $39665 million in 2016-17 from $39664 million in the previous financial year. Of the total export, in 2016-17, readymade garment’s export stood at $17091 million, while export of cotton textiles stood at $10594 million. There was increment in export of carpets and coir & coir manufacturers, which surged to $1498 million and $297 million in FY17 from $1442 million and $262 million in FY16 respectively. However, silk export declined to $270 million in FY17 from $344 million in FY16.
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