The crucial policy measures implemented by the Ministry of Textiles to revitalise the Indian textile industry have been upheld by the Confederation of Indian Textile Industry (CITI).
Including the imposition of Minimum Import Price (MIP) on specified MMF Knitted Fabric lines and exemption for certain inputs from Quality Control Orders (QCOs), these measures aim to provide immediate relief to the industry while setting the stage for sustained growth.
A significant step, the imposition of a Minimum Import Price (MIP) of $3.5/kg on selected lines of MMF Knitted Fabrics, effective until September 15, 2024, aims to safeguard the interests of domestic manufacturers. Besides protecting local businesses from unfair competition, this measure also encourages indigenous production.
The provision for exemptions for inputs imported by Advance Authorisation holders, Export Oriented Units (EoU), and Special Economic Zone (SEZ) units from mandatory Quality Control Orders (QCOs) makes the regulatory framework more flexible and efficient. By smoothening operations for business, these measures enhance productivity and competitiveness.
Coupled with other growth drivers, these policy interventions are anticipated to propel the Indian textile industry towards its visionary target of becoming a $350 billion industry by 2030. The industry is also projected to attract investments worth $100 billlion and generate over 15 million new jobs, thus expanding India’s socio-economic landscape.
However, to achieve these ambitious production targets, CITI advocates for a series of policy recommendations to enhance the cost competitiveness of the cotton value chain and foster the growth of MMF textiles.
One of the primary recommendations of CITI includes the removal of import duties on all varieties of cotton, including cotton waste, to alleviate cost pressures on manufacturers and promote affordability across the supply chain. Additionally, the trade body proposes measures to enhance cotton productivity, such as the adoption of specialised seed varieties like HTBt cotton seeds.
CITI also recommends the exemption ofthe domestically unavailable fibers and yarns from Quality Control Orders (QCOs), establishment of a committee to oversee the availability of raw materials, and addressing GST duty inversion to mitigate capital blockage within the MMF value chain.
Lastly, CITI calls for a separate Harmonised System of Nomenclature (HSN) codes for recycled MMF-based products and expanding viscose manufacturing hubs to reduce logistical costs.
