Question: When did the cabinet approved Special Package for Textile & Apparel Sector?
(a) 22 June 2016
(b) 20 June 2016
(c) 18 June 2016
(d) 24 June 2016
Ans:(a)
Related facts:
- On 22 June 2016 the Union Cabinet under the Chairmanship of Prime Minister Narendra Modi has given approval for a special package for employment generation and promotion of exports in Textile and Apparel sector.
- It will create Jobs for 1 crore people, mostly women and there will be increase in Exports by US$ 30 bn and bring investment worth Rs. 74,000 crores coming three years.
- The majority of new jobs are likely to go to women since the garment industry employs nearly 70% women workforce.
- Salient features of the package announced are:
- Employee Provident Fund Scheme Reforms-
- Govt. of India shall bear the entire 12% of the employers’ contribution of the Employers Provident Fund Scheme for new employees of garment industry for first 3 years who are earning less than Rs. 15,000 per month.
- At present, 8.33% of employer’s contribution is already being provided by Government under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY).
- Ministry of Textiles shall provide additional 3.67% of the employer’s contribution amounting to Rs. 1,170 crores over next 3 years.
- EPF shall be made optional for employees earning less than Rs. 15,000 per month
- This shall leave more money in the hands of the workers and also promote employment in the formal sector.
- Increasing overtime caps-
- Overtime hours for workers not to exceed 8 hours per week in line with ILO norms.
- This shall lead to increased earnings for the workers.
- Introduction of fixed term employment:
- Looking to the seasonal nature of the industry, fixed term employment shall be introduced for the garment sector.
- A fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowanced and other statutory dues.
- Additional incentives under ATUFS-
- The package breaks new ground in moving from input to outcome based incentives by increasing subsidy under Amended-TUFS from 15% to 25% for the garment sector as a boost to employment generation.
- A unique feature of the scheme will be to disburse the subsidy only after the expected jobs are created.
- Enhanced duty drawback coverage-
- In a first of its kind move, a new scheme will be introduced to refund the state levies which were not refunded so far.
- This move is expected to cost the exchequer Rs 5500 crores but will greatly boost the competitiveness of Indian exports in foreign markets.
- Drawback at All Industries Rate to be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme
- Enhancing scope of Section 80JJAA of Income Tax Act-
- Looking at the seasonal nature of garment industry, the provision of 240 days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry
- The textile industry is one of India’s oldest industries.
- Presently, it contributes about 11 percent of the country’s total exports.
- In 2014-15 about 41.4 billion US dollars worth of export revenue was earned from this sector.
- Indian textile industry contributes about 5% of GDP.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=146416
http://pib.nic.in/newsite/PrintRelease.aspx?relid=146422
http://pib.nic.in/newsite/PrintRelease.aspx?relid=146418
http://pib.nic.in/newsite/PrintRelease.aspx?relid=146421