Breaking News

You are here » Indian-Commodity  :  Economy  :  Need to relax labour laws, boost incentives to promote India's textile sector: Report


Need to relax labour laws, boost incentives to promote India's textile sector: Report

The study, commissioned by the textiles ministry and conducted by the Indian Institute of Foreign Trade (IIFT), has stated that there is need to relax set of labour laws and boost incentives in order to promote India as most preferred sourcing destination in textiles sector. It also suggested that strengthening the eco-system for textile exports, integrating fragmented textile value chain and investing in skill up-gradation as measures required to boost India's sourcing potential.

According to the report, outdated labour laws within the textile sector hamper India from becoming labour competitive. It also said that India is not perceived to be a low cost labour destination. It observed that the incentives offered in India are much below that offered in China, thereby making Indian products lose out on being price competitive in the global markets. Besides, it called for innovation in terms of new products, new business models and collaborations; digitisation of entire supply chain from product development to delivery and ensuring compliances related to quality and legal issues, so that India is recognised for producing world class products.

The report further said that IIFT also believes that key to success is encouraging product as well as market diversification for varied textiles & apparel products and clear positioning of Indian Textiles in International Markets. As per the study, the poor state of roads and connectivity around weaver hubs have led to reduced number of personal visits by buyers, leading to greater dependence on buying agents. Moreover, it said that the high import cost of latest machines deter many small manufacturers from upgrading to the latest technology, thereby contributing to compromises on quality.

Related News

View all news

Govt increases investment limit for availing income tax concessions by startups

The government has given a major relief to startups by enhancing definition of startups. It has decided to relax angel tax norms for startups, including increasing the investment limit to Rs 25 crore for......

India needs revolution in farm sector to achieve 9-10% GDP growth: Niti Aayog CEO

Niti Aayog CEO Amitabh Kant has stated that there is need to bring revolution in farm sector to attain 9-10% Gross Domestic Product (GDP) growth. He also said that there is a need to boost investment in......

ASSOCHAM pitches for growth rate of 8-8.5% per annum

In order to make India a $5 trillion economy by 2025, Industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) has come out with charter of demands and called on political parties......

Top News

View all news

Power Grid fully utilises JPY 22 billion loan

Power Grid Corporation has fully drawn a 22 billion Japanese Yen (JPY) loan and utilised it to finance capital expenditure for its ongoing and new projects.Power Grid had entered into a JPY 22-billion......

Mahindra deploys six armoured Marksman at Delhi Airport

Mahindra Group has deployed six armoured Marksman vehicles at Indira Gandhi International Airport in Delhi. With this deployment, Delhi airport becomes first to get bullet-proof vehicle in its premises......

Oil India signs MoU with Gauhati University: Report

Oil India and Gauhati University have reportedly signed a Memorandum of Understanding (MoU) on March 19, 2019. The MoU aims to extend the facility of Technology Incubation Centre at Gauhati University......