The Government of India has recently announced a scheme targeting at its garment export to reach $30 billion in three years. Prime Minister Modi’s government recently unveiled a scheme with an annual outlay of about (Rs 6,000 crore that will enable the country to reach $30 billion in garment export in three years.
The scheme is labour friendly and empowers women and underpriviledged working in the garment and allied sectors. In three years, the initiative is expected to attract additional investments worth $11 billion and will provide 10 million new jobs.
An important aspect is that the garment exporting units will enjoy 5 per cent additional duty drawback which will boost the competitiveness of Indian exports in foreign markets. This initiative will cost the government about Rs 5500 crore annually. As a first of its kind, units will be able to obtain refund for state levies that were not included in the computation before.
Garment sectors are set to benefit tremendously with this scheme. According to the Government, this scheme will result in social transformation by uplifting women in rural areas as 70 per cent of the workforce in the garment sector are women.