Govt approves sops to boost textiles manufacturing, exports

The Cabinet today approved incentives to boost job creation, manufacturing and exports in labour-intensive textile sector.

"Cabinet has approved concessions to boost manufacturing and exports in textile sector," official sources said.

Moreover, production incentives through Technology Upgradation Fund Scheme (TUFS) linking capital subsidy will be introduced.

According to sources, the measures also include simplification of labour laws like introduction of fixed term employment and enhancing duty drawback to push textile and apparel exports.

Textiles exports for 2015-16 fiscal stood at USD 40 billion, falling way short of the USD 47.5 billion target, a senior Textiles Ministry official had earlier said.

The sector, which is the country's second largest employer after agriculture, contributes nearly 14 percent to industrial production and 4 percent to the GDP.