India - Textile sector looks at new industrial policy for relief
Dated- 22 May , 2012 - India
The textile industry in the state is looking at the forthcoming new industrial policy for relief and to get out of the problems that they are facing at present. Lack of skilled staff, high value added tax (VAT) and lack of clarity in the import policy for importing textile equipment are some of the reasons, which prevent the industry from attaining the growth in the state at the desired pace.
Recently at a meeting with chief minister Shivraj Singh Chouhan, the representatives of the industry promised to increase the minimum wages to Rs 9,000 from the present Rs 7,000 per month. The idea was to address the lack of adequate skilled labourers in the sector.
Talking to ToI, Ashok Mehta, managing director of Veda Group, said that the VAT at 13% was the highest in the country. Secondly, labourers were going back to their own states like Bihar in search of new jobs and it has hit the industry hard in the state, he said.
Dipesh Agrawal, CEO, Ashok & Co, said that the industry was heavily dependent on equipment being imported from Japan. However, in the absence of clarity in state government's policy on the issue, the industrialists have to wait for a year in getting their import formalities cleared, which adds the woes of the industry.
These issues were discussed at length during a day-long seminar which was held here recently. Apart from it, an international textiles machinery exhibition is being held at Mumbai from December 2 to 7 this year.