Mr. Sanjay Jain, Chairman, Confederation of Indian Textile Industry (CITI), has welcomed the new scheme launched by the Gujarat Government for assistance to strengthen specific sectors in the textile value chain. He has thanked the State Government for being prudent and excluding ginning and spinning sectors as there is overcapacity and focusing on value-added segments where the country is weak, such as weaving, knitting, processing and technical textiles. He has highlighted the fact that under the previous policy of the Gujarat Government, there has been a lot of investments in the spinning sector. However, the spinning capacity in India is already in excess with 30% exportable surplus, and there is no need for any further investment incentives for this sector. Further, with the excess capacity in spinning and removal of all export incentives, the sector is facing tremendous margin pressure and a lot of NPAs are happening in it.
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