Raymond:

We have five expectations from the new Textile Minister. There has to be an equal focus on the domestic markets as well as markets outside India. This would enable the Indian textile sector to get an edge over its global counterparts and with regards to what industry needs from the government; Subsidies should be extended to farmers on MSP (Minimum Support Prices).This would decrease the burden of higher MSP to the industry. The interest of value adding ventures can be catered to by abolishing the incentive of 5 % on cotton export with immediate effect to curtail the price shoot up which is currently beneficial only to traders.

Import duty on cotton yarns as well as on specialty cotton / lycra / spandex yarns should be abolished as the domestic capacity for these specialty yarns is insufficient. The import duties of these special yarns pose a problem to the export of the textiles using these yarns. The TUFS scheme should be further strengthened and the back log should be released. Government should help ease the process of bank credits applicable to the industry. Export Incentives should be on par with other competing countries like China, Vietnam and Bangladesh and at a broader level the policy support can help make the textile industry competitive and broad based by encouraging value addition and giving rise to further employment.

Alok Industries Ltd: Mr Sunil Khandelwal, CFO

The new Union Textile Minister Mr Dayanidhi Maran comes from a state where textile is a major industry and hence he would be well aware of the needs of the industry. He would therefore be a very good representative for the textile industry in the cabinet. We expect the minister to well address most of our concerns of which some of the prominent ones are; early disbursal of interest subsidy under the TUF scheme by allocating a higher amount, continuation of RBI subvention of interest rates at 2 percent for exports which may also be increased to 4 percent, temporary decrease in excise duty on polyester to 4 percent be made permanent, duty draw back rates may be increased across the board to boost exports and duties under the EPCG scheme may be brought down to 3 percent for import of textile plant and machinery.

Gokaldas Exports Ltd: Mr Rajendra Hinduja, Managing Director

The Apparel Sector is a very important sector for any Ministry in view of its high employment potential. Directly and indirectly we employ more than 10 Million workers. To safeguard this employment and to promote further employment, there are 2 suggestions I would like to make. In the long term, the important points are; flexible labour laws, fresh investments, creating textile parks to encourage process houses to grow and presently, in India we have a huge shortage of good processing houses.

In the short term, the stimulus package as announced by the Government of India has not gone a long way in helping the apparel sector. To tide over the present economic crisis and to ensure that we are not losing business to Bangladesh and Vietnam, we need the following on an urgent basis; increase in duty drawback, increase in subvention of interest on exporters loans, income tax incentives like 80 HHC 10B extended by 5 years and exemption from service and fringe benefit tax.

Orient Clothing: Mr Ravi Dhingra, MD

There should be labour reform, so that we can link wages with productivity. Secondly as industry is facing tough time these days, we should look at the neighbouring countries like Sri-Lanka, Bangladesh etc. which have taken strong steps to support the industry, such as cheap electricity, low rate of interest and relaxation in several taxes till the situation stabilizes.