Mumbai, Nov 3 (UNI) The Confederation of Indian Apparel Exporters (CIAe) today welcomed the continuation of the TUF Policy until 2012.
CIAe president Amit Goyal said '' The government's decision to continue with the TUF Policy is a step in the right direction.
The Apparel Sector is going through its worst time and several exporters are shying away from making fresh investments. With these new measures, we could once again see more investments flowing into the textile and apparel sector, which is the need of the hour.'' With a major part of the expansion and modernisation of Apparel Units being invested in developing the land and building.
The government's decision for 10 per cent capital subsidy in addition to five per cent interest reimbursement for machineries required in manufacture of technical textiles and garments will help companies set up mega manufacturing facilities, which will help India compete with China more aggressively, observed Mr Goyal.
With the appreciation of rupee hitting the highly labour intensive apparel industry really badly, the new measures announced by the Textile Ministry have come as a bit of a relief and should help boost the sagging apparel exporters in the second half of the financial year, he added.