New Delhi: Textile sector stocks rallied on Sunday after the government announced the setting up of Mega Textile Parks in a challenge mode with a focus on integrated infrastructure and value addition, among a raft of reforms.
Shares of Gokaldas Exports surged 10.81 per cent, Arvind Ltd climbed 5.54 per cent, Vardhman Textiles jumped 4.61 per cent, Pearl Global Industries went up by 2.48 per cent, and K P R Mill advanced 2.38 per cent on the BSE.
Rally in these stocks was in sharp contrast to the weak trend in equities.
Reversing early gains, the 30-share BSE Sensex tumbled 2,370.36 points or 2.88 per cent to slide below the 80,000-mark at 79,899.42 in the afternoon trade. The benchmark gauge ended at 80,722.94, down 1,546.84 points or 1.88 per cent.
The government on Sunday, February 1, announced the setting up of Mega Textile Parks in challenge mode with a focus on integrated infrastructure and value addition, among a raft of reforms, including a five-pronged integrated policy framework, to provide a shot in the arm to India’s employment-intensive textile sector.
The proposed establishment of new Mega Textile Parks will attract investments, improve compliance and traceability, and create integrated hubs for scale, quality control and exports.
It will also support growth in technical textiles, a high-potential segment critical for industrial, medical, defence and infrastructure applications.
In a major boost to exports of textiles, leather and marine products, the Budget announced the extension of the export obligation period from 6 months to 12 months for exporters of textile garments, leather garments, leather or synthetic footwear and other leather products manufactured using duty-free imported inputs.
This measure will provide greater operational flexibility, ease of compliance and improved working capital management for textile exporters, currently grappling with 50 per cent tariffs on Indian goods imposed by the US – India’s largest export market.
In her budget speech, Union Finance Minister Nirmala Sitharaman said, “For the labour-intensive textile sector, I propose an integrated programme with 5 sub-parts”. Under these five sub-parts, she announced a ‘National Fibre Scheme’ for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres.
