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Committee on textiles submits interim report

The steering committee on textiles on Friday submitted its interim report to Prime Minister A B Vajpayee suggesting measures to tune up the fiscal policy in a manner that encourages growth particularly after the dismantling of quota system from 2005.

The committee, chaired by Planning Commission member N K Singh, submitted the report in time to enable the government to incorporate the recommendations in the Budget.

The voluminous report contains recommendations on fiscal measures including lowering of excise and customs duties to encourage the growth of the textiles industry.

The group opined that textiles industry has to be made competitive to meet the challenges that may arise with the dismantling of Multi-fibre Agreement in the next three years.

The second part of the report would cover other areas like modernisation of textiles industry, specific steps for augmenting export capability and other related and long-term policy issues.

India proposes to step up textile exports to $50 billion annually from the present level of about of $15 billion in the next five years, and for this fiscal incentives and conducive tax regime is essential.

Apart from N K Singh, the committee comprises of textiles, revenue, labour, chemicals and petrochemicals secretaries, besides additional secretary (banking) and director general of foreign trade.

The prime minister constituted the steering group after the textiles ministry made presentation in October highlighting its problems and potential for growth.

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