Cabinet to clear textile policy on June 22; Textile stocks to be in focus

The centre on June 22 will clear the much awaited textile policy. Earlier the policy was supposed to be cleared by April 2016. The new policy will increase the exports and create 35 million jobs. The new policy will seek to address the concerns over skilled labour, labour workforce, labour reforms and how to attract investments in this sector.

With the changing road map of textile industry, the centre may also seek to review the National Textiles Policy which was initiated in the year 2000.The major competiton to the Indian textile industry was from China, but however the slowdown in China has increased their cost of production of textiles, giving India a strategic advantage.

On the news, the textile stocks on bourses have rallied. The shares of Raymond, Bombay Dyeing, RSWN have rallied by 5.21, 8.19,9.98 per cent respectively.

The Textile Minister, Santosh Gangwar in a statement to the media houses on June 10, said that around 3.75 lakh youth operating in the Textile industry are trained under the Integrated Skill Development Scheme and 70 per cent of youths have already got the jobs in the sector.The cabinet outcome on the new policy is expected to come by 10 am, on June 22. The above mentioned stocks will be the talk of the street if the bill gets cleared.