Amid speculation of partial withdrawal of stimulus in the upcoming Union Budget, Textiles Minister Dayanidhi Maran on Tuesday pitched for continuation of these measures for the textile sector for some more time as it is yet to recover fully.
The industry has been demanding for continuation of the relief provided by the government for some more time.
"Yes, we support the views of the industry and I am sure that the industry views will be considered. It's not that we have jumped out of the recession and running," Maran said.
Under the stimulus package, the sector got incentives like refund of import duties on capital goods, service tax refund and announcements for cluster development.
The sector also got interest rate subsidy, but it falls under the Reserve Bank. The textile exports, which took a beating after October 2008 due to the economic crisis, declined by about two per cent to $21.75 billion in 2008-09.
Maran said, "I am sure that the exports in the current fiscal will be minus as textile exports registered an average decline of 15 per cent during April-November 2009 compared to the same period in 2008."
However, he said, "In December and January, the exports grew by five per cent and seven per cent respectively on a monthly basis."
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