By: Saha Chandan

Technology is an important component in manufacturing of Capital Goods to sustain in the competitive market. Indian Textile Engineering Industry (ITEl) is one of the critical components of the Capital Goods manufacturing sector, as this sector has been playing an important role catering to the needs of domestic industry as well as forex earning and controlling outflow of foreign exchange. This sector has got a direct contribution for the economic growth of the country.

This sector had been excelling well till mid80s but thereafter it showed no improvement for the next two decades. The capacity utilization of this sector has been moving to a downward direction, production capacity is not indicating any encouraging trend till the beginning of the century. There is no improvement in export of textile machinery but there is a rise in import for the last couple of years. The industries in the sector have been passing through a rough weather till a couple of years back due to recession in the textile industry.

However, now the industry has been able to resurge and slowly move towards a path of growth. But over all, the performance is still far behind the target in absence of technology res urgency and innovative design to produce hi-tech machinery of international standard.

It is reported that there will be a huge demand of textile machinery by 2010 to modernize the textile industry through up gradation of existing technology or absorption of new technology. So there will be enough opportunities to resurge the sectors with a new hope. Machine manufacturers of developed countries have shown keen interest to enlarge marketing through joint venture or Technology transfer. At present, the Indian textile including Garment manufacturing industry has been importing second hand & reconditioned machinery to absorb the technology for modernization of the unit to cope up with the challenges to meet the buyer's needs in the Global market. But the age old imported technology & machinery may temporarily fulfill the requirement; certainly it does not serve the purpose in totality.

So, long-term solution is the Technology Resurgency in Indian Textile Engineering Industry (ITEI) to bring back the industry on rail and also to meet the users needs both in the country & in the Global market.

Brief of the Indian Textile Engineering Industry:

Indian Textile Engineering Industry is more than 50 years old. This segment of engineering industry comprises of 700 units, of which, 250 units are manufacturing complete machinery and the remaining units are involved in manufacturing parts and accessories. There is an investment of Rs.1750 crores to build up an annual capacity of Rs.3800 crores. However, the capacity has shrunk to Rs.3050 crores as a result of the deep recession faced by the industry during the last 10-12 years.

The capacity utilization of the industry was only 67% in the year 2005-06 and 55% in the year 2004-05. This sector directly employs around 50,000 people. Indian Textile Engineering industry is one of the important and largest segments of capital goods manufacturing sector in terms of manufacturing activity & business.