CITI backs ministry's push to revitalize Indian textile industry

The Confederation of Indian Textile Industry (CITI) has thrown its weight behind a series of crucial policy measures implemented by the Ministry of Textiles. These initiatives, designed to breathe new life into the sector and propel it towards ambitious growth targets, include the imposition of Minimum Import Prices (MIP) and exemptions from Quality Control Orders (QCOs) for specific segments.

A key measure is the introduction of a Minimum Import Price (MIP) of $3.5/kg on specified lines of imported Man-Made Fiber (MMF) Knitted Fabrics. This policy, in effect until September 15, 2024, aims to shield domestic manufacturers from unfair competition and incentivize indigenous production of MMF textiles. This move is expected to strengthen the domestic industry and create a more level playing field.

Another vital initiative is the exemption for specific inputs imported by Advance Authorisation holders, Export Oriented Units (EoUs), and Special Economic Zone (SEZ) units from mandatory compliance with Quality Control Orders (QCOs). This exemption streamlines regulatory procedures for these businesses, allowing for smoother operations, increased productivity, and enhanced competitiveness in the global market.

These policy interventions, coupled with other growth-oriented strategies, are projected to propel the Indian textile industry towards its ambitious target of becoming a $350 billion powerhouse by 2030.  This vision also encompasses attracting investments worth a staggering $100 billion and generating over 15 million new jobs, significantly bolstering India's socio-economic landscape.

However, CITI acknowledges the need for additional policy changes to fully achieve these ambitious production targets. The industry body has proposed a series of recommendations aimed at enhancing the cost competitiveness of the cotton value chain and fostering the growth of MMF textiles.

• Reduction in cotton import duties: CITI advocates for the removal of import duties on all varieties of cotton, including cotton waste. This move aims to alleviate cost pressures faced by manufacturers and promote affordability throughout the textile supply chain.
• Boosting cotton productivity: The industry body emphasizes the importance of measures to improve cotton yield in India. This includes the adoption of specialized seed varieties, such as HTBt cotton seeds, that can significantly increase production.
• Targeted exemptions from QCOs: CITI recommends exempting domestically unavailable fibers and yarns from Quality Control Orders (QCOs). This would simplify the import process for such essential raw materials.
• Addressing raw material availability: To ensure a stable supply of raw materials, CITI proposes the establishment of a dedicated committee to monitor availability and address potential shortages.
• Mitigating GST duty inversion: CITI calls for addressing the issue of GST duty inversion within the MMF value chain. This policy change would help in reducing the blockage of working capital for businesses.
• Promoting recycled MMF and viscose manufacturing: To further enhance the industry's sustainability and competitiveness, CITI suggests the creation of separate Harmonised System of Nomenclature (HSN) codes for recycled MMF-based products. Additionally, the trade body calls for the expansion of viscose manufacturing hubs to reduce logistical costs.