New textile policy in the works on domestic demand with a view to emerge India as manufacturing hub
On domestic demand (garment manufacturers) recently the Govt. declared the new Textiles Policy 2020 which is aimed at developing in the country a competitive textile sector that is modern, sustainable and inclusive. This new policy will have a special focus on manufacturing of apparel and garment, technical textiles, man-made fibre products and exports.
The association of Garment Manufacturers from Solapur has declared in a memorandum to the Union government that the new textile policy must promote entrepreneurship in garment manufacturing sector.
For this new units should be provided with loans of up to ₹2 crore with interest-free provision for the first three years and subsequent three years with a subsidised interest rate of 4% per annum. This will make the new units competitive. To encourage employment of unskilled labour in garment industry an “on job training incentive scheme” must be introduced wherein an incentive of ₹3,500 per labour per month is provided for a period of initial six months.
It added provision should be made for a single window clearance system for setting up garment/ textile units and a single nodal officer must make sure that all the licenses and permission are be given within 15 days from the date of application. It said Solapur must be declared as India’s Uniform Manufacturing Zone which would make Solapur as one of the world’s first cities to have unique uniform sourcing hub.
According to the association this will help government earn foreign exchange in the form of exports and also ensure employment opportunities for millions of local people.