New Delhi: India will extend to 2012 a scheme to provide subsidies to textile firms upgrading their technology, the textiles minister said on Wednesday.
The Technology Upgradation Fund Scheme, which provides a 5% interest subsidy to firms, had expired in 2007.
“The existing initiative of the ministry will be deepened to expand the coverage of its scheme to benefit the decentralised sector like powerloom and small scale sector in a comprehensive manner” Dayanidhi Maran told a news conference.
India’s overseas textile sales, about 13% of all exports, have been hit by declining demand from key markets like the United States and Europe, as well as a firming rupee.
Growth in textile exports was flat in the year to March 2009 from a year ago, when it stood at $22 billion.