India will probably announce financial incentives for the troubled Indian textile and garment industry by this year-end, to help the industry reduce impact of fall in exports of textiles and clothing.
The fiscal incentives may be given under the Production Linked Incentive (PLI) scheme in which the Indian government had allocated thousands of crores in Indian rupees for various manufacturing sectors in 2020.
Media reports quoted T Rajkumar, Chairman of Confederation of Indian Textile Industry (CITI), a apex textile trade body, as saying that the government could make an announcement by December 2023.
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He was referring to industry representatives meeting the Indian textile and finance ministry officials earlier this month.
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In the meeting, the representatives had requested for fiscal incentives under the PLI scheme, while also urging the Indian government to withdraw 11 percent duty on import of cotton.
In the period between April to July 2023 or the first four months of fiscal 2024, Indian textile and garment exports dropped by nearly 14 percent year on year to .
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25 billion.
The Indian textile and garment industry which provides employment to over 4.
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5 crore people has been ailing since exports declined to its main markets of the US and EU, due to consumers cutting back on spending.
