Identification of the textile sector as a priority one for ‘job creation’ by the government certainly augurs well for the long-term.
This is particularly a positive for players in the garmenting side, the same being very labour-intensive. Tax sops by way of lower excise duties on polyester fibre are likely to reduce the raw material cost.
Given the latent opportunities present in the global scenario, the measures are likely to help the textile companies become more competent and attract sizeable orders from the US and European markets.
More importantly, it would enable textile companies to increase capacities and gain scale, which is critical element while bidding for global orders.
This is particularly a positive for players in the garmenting side, the same being very labour-intensive. Tax sops by way of lower excise duties on polyester fibre are likely to reduce the raw material cost.
Given the latent opportunities present in the global scenario, the measures are likely to help the textile companies become more competent and attract sizeable orders from the US and European markets.
More importantly, it would enable textile companies to increase capacities and gain scale, which is critical element while bidding for global orders.