Govt to unveil bundle of sops in new textile policy soon

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SME Times News Bureau | 23 Jul, 2013
In order to give a boost to textile sector, the government would soon come out with a new textile policy, that will bring forth various incentives for the sector, Union Textile Minister, Dr Kavuru Sambasiva Rao has informed recently.

"The new textile policy is on the anvil and is going to be announced soon with lots of incentives for the textile sector," said Dr Rao, while addressing around 200 leading Textile and Clothing industrialists and R & D experts from India and abroad at Confederation of Indian Industry's flagship event for Textile sector - Texcon 2013, recently.

"There is indeed a need for softer labour laws for the textile sector and creation of best infrastructure, providing easy and cheaper power, land and credit to attract investments in the textile industry and achieve its true potential," he added.

The minister has also emphasized that special attention to textile industry can reduce the rising Current Account Deficit (CAD) and can strengthen the continuously weakening rupee.

"Textile industry has the potential to resolve the problem of ever rising Current Account Deficit (CAD) and can strengthen the continuously weakening rupee, if speedy decisions are taken and favourable policies are drafted and implemented on urgent basis to support the textile sector," emphasized Dr Rao.

"Textile industry is also capable of contributing tremendously to the national GDP by creating numerous jobs. But to achieve this, we need to integrate the sector, build a chain and should only export the finished products, retail garments, apparels, non woven fabrics, composites etc after adding value and not the raw materials," he further emphasized.

"I have assured the Prime Minister that, the textile sector can easily touch exports of USD 43.7 billion next year, a rise of 30 percent over the USD 33.7 billion exports in 2012. Textile sector in India has tremendous potential considering, strong production base, labour, strong domestic demand etc."

The minister also released the CII Report on India; An Attractive investment & sourcing destination.

Sunaina Tomar, Joint Secretary, Ministry of Textiles shared that "lack of competitiveness and infrastructure has been holding the textile sector back. So we have launched Textile Clusters under PPP mode to provide best infrastructure support to the industry and achieve optimization." She also called for a paper on the various issues and suggestions of the industry.

Sachit Jain, Co-Chairman, CII National Textile Committee & Executive Director, Vardhman Textiles said, "The Indian textile sector which employs 90 million people directly or indirectly today desperately needs huge investments in latest machinery, R & D, innovation, Free Trade agreements with European Union, FDI, Joint Ventures (JVs), and stable government policies, if it has to grow to its true potential. 60 % of what is bought today is non - cotton, synthetic and man - made fabric."

"Hence both Indian textile industry and the government should also change focus from cotton yarns to synthetic fabrics to be globally competitive," he added.