Big boost for textile sector: Govt approves special package for employment generation & promotion of exports
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Govt plans to generate one crore jobs in the textile and apparel industry over next 3 years
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Textile sector: Govt efforts to lead to a cumulative increase of US $ 30 billion in exports
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Centre plans to invest ₹ 74,000 crores over next 3 years into textile sector
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Govt's special package for textile sector a boon for women workforce on the country
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- Govt. of India shall bear the entire 12% of the employers’ contribution of the Employers Provident Fund Scheme for new employees of garment industry for first 3 years who are earning less than Rs. 15,000 per month.
- At present, 8.33% of employer’s contribution is already being provided by Government under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY). Ministry of Textiles shall provide additional 3.67% of the employer’s contribution amounting to Rs. 1,170 crores over next 3 years.
- EPF shall be made optional for employees earning less than Rs. 15,000 per month
- This shall leave more money in the hands of the workers and also promote employment in the formal sector.
- Increasing overtime caps
- Overtime hours for workers not to exceed 8 hours per week in line with ILO norms.
- This shall lead to increased earnings for the workers
- Introduction of fixed term employment
- Looking to the seasonal nature of the industry, fixed term employment shall be introduced for the garment sector
- A fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowanced and other statutory dues.
- Additional incentives under ATUFS
- The package breaks new ground in moving from input to outcome based incentives by increasing subsidy under Amended-TUFS from 15% to 25% for the garment sector as a boost to employment generation.
- A unique feature of the scheme will be to disburse the subsidy only after the expected jobs are created.
- Enhanced duty drawback coverage
- In a first of its kind move, a new scheme will be introduced to refund the state levies which were not refunded so far.
- This move is expected to cost the exchequer Rs 5500 crores but will greatly boost the competitiveness of Indian exports in foreign markets.
- Drawback at All Industries Rate to be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme
- Enhancing scope of Section 80JJAA of Income Tax Act
- Looking at the seasonal nature of garment industry, the provision of 240 days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry