Jute mills can get entire payment for government orders only after jute farmers and labourers are paid in full. And the Centre plans to bring a policy in this regard soon, Smriti Irani, Union Textile Minister, said on Saturday.

She however did not mention the time frame within which this policy will be in effect.

According to her, the industry gets ready orders worth Rs 5,000-5,500 crore every year (in terms of sacking). But complaints regarding farmers and labourers not benefiting or being paid in full keep coming-in. 

“The government gives such a huge order so that the jute industry stays alive. The money is given so that farmers and labourers can get benefit out of it," she said during an interactive session organised by the Indian Chamber of Commerce here.

"Now, we are making it mandatory, that if you do not pay farmers or labourers or abdicate the responsibility, we will not give you the order," Irani added.

Special incentives will also be given to those who look at diversified jute offerings.

According to Irani, the Centre is also focusing on transforming small-size firms into mid-size entities, Irani said.

"For the growth to happen exponentially, we are pushing towards ensuring that the small-size firms become mid-size entities. It needs infrastructure push," she said.

According to her, India is looking at the trade war between China and the US “as an opportunity”. The idea would be to ensure that India benefits through a mix of policy intervention and industry practices.

 

Resurrecting the economy

According to Irani, the Modi-government had inherited “a nation left behind in shambles” by the UPA-II. But, efforts are being taken to resurrect it.

Speaking at another interactive session organised by The Merchants’ Chamber of Commerce and Industry (MCCI), Irani said the Centre is investing heavily in infrastructure development and nearly Rs 5.7 trillion will be spent here over the “next few years”.

Rising NPAs in public sector banks too us a result of lending to “unviable projects” made during the UPA regime.

The Indian economy has also witnessed a turnaround with agri-sector reporting a 8.2 per cent (year-on-year) growth in the first three months of FY19.

Manufacturing sector, during this period, grew by 13.5 per cent; while commercial and passenger vehicle sales too have grown by 51 per cent and 18 per cent respectively.

“A proof of the recovery of the economy is that in 2017-18 the country saw FDI flows of $ 6.2 billion (Rs 45000 crore),” she said.

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