The Indian textile industry will have a major impact due to the decision of the European Union to give zero duty status to Pakistan. In order to overcome this situation, a proposal has been put forward to the government for increasing the duty drawback rate by the textile ministry.

Union Textile Minister Kavur Sambasiva Rao on Saturday said that it was a political decision by the EU, to help Pakistan, considering floods and various other problems being faced by that nation...,” he told reporters here on the sidelines of a convocation function.

He further said that as the EU is the largest textile market for India, definitely it is going to impact and a set back to the Indian textile industry, which is being levied 9.6 per cent duty and in order to rescue to exporters, the ministry has sent a proposal to increase the duty drawback by five per cent.

On complaints with regard to clearing Textile Upgradation Fund, Rao said his ministry had cleared the applications till September 2013 and asked the Banks to provide lists of the industries waiting for the fund for the last two years.

Earlier, speaking after releasing a cotton BT seed, developed by Southern India Mills Association (SIMA), Rao said that all efforts are taken to solve various problems faced by the industry since he took over the ministry.

If the industry has any genuine problem, come to Delhi (to solve them), as he just got only few months’ time, he said in a lighter vein indicating Lok Sabha elections were round the corner. He blamed lack of “determination and dedication” by the government for problems faced by the industry.

Till 15-20 years ago China was far behind India. But now Chinese global share in exports is 33 per cent whereas India’s 4.5 per cent... because the government was lacking in its duty, determination and dedication.

Rao said that the textile industry had exported materials worth $33 billion against the target of $36 billion this fiscal.