New Delhi: Demanding further incentives for textile sector, industry body Assocham today said interest subsidy should also be extended up to March next year to revive the industry which is facing a stagnant phase.

"The textile sector is at verge of slipping to a stagnant phase. Thus, some more tax concessions should still be extended...So that India is able to retain competitiveness," Assocham President Sajjan Jindal said in a statement.

The industry body has sought that interest subvention scheme for the textile sector be continued up to March 2010.

The government has already extended the scheme, under which exporters are compensated for reduced profits, to up to September 2009.

While the 11th Five Year Plan targets 22 per cent growth in the Indian textile exports, the growth rate has decelerated from 16.6 per cent in 2005-06 to less than 12 per cent now, it said.

The second largest employment generating sector, next to agriculture, is expected to generate 17.37 million new jobs during this plan period, but almost 1.5 million people in the sector have already lost their jobs since last year and few more million are likely to be jobless.

Source : PTI