CITI Chairman Sanjay Jain has welcomed the new textile policy launched by the Gujarat Government for assistance to strengthen the textile value chain.
Jain thanked the state government for being prudent and excluding the ginning and spinning sectors as there is overcapacity and focusing on value-added segments such as weaving, knitting, processing and technical textiles.
However, the spinning capacity in India is already in excess with 30% exportable surplus and there is no requirement of any further investment incentives for this particular sector.
He further stated that due to excess capacity in spinning segment and removal of all export incentives, the sector is facing tremendous margin pressure and a lot of NPAs are happening under spinning segment.
He also stated that there is a need to have a country-focused approach against the state level policies.