5,000 cr investments to flow in apparel industry
The Dollar Business Bureau
Apparel Export Promotion Council of India is hoping for Rs.5,000 crore investments to be flown in the apparel industry in current fiscal. The investments may create over two million job opportunities.
Terming the recently announced Rs.6,000 crore booster package by government as ‘game changer,’ AEPC Chairman Ashok Rajani stated that the industry may see Rs.5,000 crore capex in near future.
The apparel sector hasn’t witnessed any major investments over the years. The additional investment has capacity to give way to two million jobseekers. Ashok Rajani added that the move may almost double the capital subsidy to 25% of investment.
Speaking on the target set by the government to create 10 million jobs and earn $30 billion through exports by 2020, Rajani said that it is achievable.
Rajani is optimistic that the targets can be achieved easily as the industry got a new package and flurry of investments are underway. India isn’t capital intensive industry, but strongly labor-intensive, he added.
The better duty drawback of 12.25%, an increase from previous 7.25%, is a major takeaway from the package leaving the ball in the court of industry, he said.
Rajani, who runs Flair Exports, said that his company is looking forward to set up a factory this year. The factory will require investment worth 6-7 crore and 250 machines. With an addition of 300 people for the new factory, which will be located in Navi Mumbai, the total employees working with Flair will climb to 1050.
On June 22, the Cabinet passed a 6,000-crore incentive package for the apparel and textile industry in an effort to create one crore job opportunities in next three years, attract $11 billion worth investments and earn $30 billion via exports.