Textiles Minister Piyush Goyal on Friday said the sector will achieve $44 billion exports target in 2021-22, and in the next five years, both the ministry and the industry have agreed to aim for $100 billion outbound shipments.
He also said the Production Linked Incentive Scheme for technical textiles and man-made fibre segment will be approved soon by the Union Cabinet, a move which would give a boost to domestic manufacturing and exports.
The proposed Mega Investment Textiles Parks (MITRA) scheme, under which seven such parks will be set up in the country over the next three years, is at an advanced stage of approval, the minister told reporters here.
This scheme was announced in the Union Budget 2021-22.
"Delighted at the way the textiles sector has engaged with the idea of achieving bigger targets. We must aim for a $100 billion export target in the next five years," he said.
He added that export has to stand on its own feet and has to be independently viable as demand for subsidies would not always help.
On free trade pacts, he said India is interacting with different nations to expedite FTAs or PTAs (preferential trade agreements).
This engagement has been ongoing with the UK, EU, UAE, Australia, among others.
Further, Goyal said they are working with the finance ministry on interest equalisation scheme and enhancement of insurance cover.
The minister said they are working closely with the finance ministry to resolve the issue of old dues on incentives for exporters.
Interest equalisation scheme was extended till September and "we are working with the finance ministry to see what happens looking forward. Of course, interest rates overall are low, so we will have to recalibrate the scheme to make it more contemporary and relevant to current interest rates," he said.
Goyal also said they are working with the finance ministry on ECGC (Export Credit Guarantee Corporation of India) to see "if we can help to increase at least the (insurance) coverage from the current 60 per cent to make it higher".
On shortage of containers and rising freight rates, Goyal said he would meet all the stakeholders on that.
However, he added that the government cannot force companies to reduce rates and that the ministry will work with the shipping department on this.
On free trade agreements, he said industry cannot say that "I want market access in other countries, but please do not allow them to come to India. That does not work".
He said that every FTA partner demands some sort of reciprocity.
"India will also have to look at opening up, if we want other countries to open up," he added.
On banking issues being faced by exporters, he advised the textiles secretary to hold a meeting with his banking counterpart and SBI chairman.
"Very soon, we are going to call a meeting of bankers to address the issues of the textiles industry and understand their problems from the bankers' perspective, as they are in the business to lend, why will they not give money. There might be certain issues which they also may have, which we will have to understand," he said.
On import duty on cotton, he said the ministry would take up the matter and also seek support from the agriculture ministry.
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