JOIN USThe industry’s exports stood at $33 b
Admitting that European Union’s decision to give zero duty status to Pakistan would impact Indian textile industry, Union Textile Minister Kavur Sambasiva Rao on Saturday said a proposal had been sent to the government to increase duty drawback rate by five per cent.
It was a political decision by the EU, to help Pakistan, considering floods and various other problems being faced by that nation...,” he told reporters here on the sidelines of a convocation function.
He was replying to a specific question on the issue which has caused concern among a large section of textile industry as the EU is the largest textile market for India.
“Definitely it is going to impact and a set back to the Indian textile industry, which is being levied 9.6 per cent duty and in order to rescue to exporters, the ministry has sent a proposal to increase the duty drawback by five per cent,” he said.
Rao said the textile industry had exported materials worth $33 billion against the target of $36 billion this fiscal.
On complaints with regard to clearing Textile Upgradation Fund, Rao said his ministry had cleared the applications till September 2013 and asked the Banks to provide lists of the industries waiting for the fund for the last two years.
Earlier, speaking after releasing a cotton BT seed, developed by Southern India Mills Association (SIMA), Rao said he had taken efforts to solve various problems faced by the industry since he took over the ministry.
“If the industry has any genuine problem, come to Delhi (to solve them), I just got only few months’ time, he said in a lighter vein indicating Lok Sabha elections were round the corner. He blamed lack of “determination and dedication” by the government for problems faced by the industry.
“Till 15-20 years ago China was far behind India. But now Chinese global share in exports is 33 per cent whereas India’s 4.5 per cent... because the government was lacking in its duty, determination and dedication. It is very unfortunate,” he said. He also said people were fed up with “all political parties, including Congress as they failed to rise up to their expectations”, and attributed this to AAP’s success in polls.