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Texprocil hails textile sector inclusion in Make in India
Sep '14
Indian textile trade body Texprocil has welcomed the recognition of the Indian textile industry as a sector capable of contributing to the ‘Make in India’ movement.

Prime Minister of India, Narendra Modi, inaugurated the ‘Make in India’ movement on September 25, under which, 25 sectors have been identified for giving a thrust under the ‘Make in India’ program and the textile industry is one of the sectors to be included.

At the launch of the ambitious ‘Make in India’ project to make India a manufacturing hub, Prime Minister Modi promised effective and easy governance to help achieve high growth and creation of jobs.

The ‘Make in India’ scheme also puts in place the logistics and systems to address in a timely manner queries of potential investors. The scheme has been unveiled along with a logo, a web portal, and brochures on 25 identified growth sectors.

RK Dalmia, Chairman at Texprocil said there are many features of the textile sector which have not been widely appreciated and are also little known.

Identifying these, he said the sector has very low overheads as compared to the other industries, practices the concept of lean manufacturing and has the youngest machines on its shop floor, even when compared to China, Pakistan, Vietnam and Indonesia.

He added, “The machines are also operated by well trained technicians at 30% or higher operating speeds when compared to mills in China.”

Mr. Dalmia also pointed out that the textile industry is ideally placed to be the engine of the future growth for creating crores of jobs, promoting inclusive growth and investments in Tier 2 and Tier 3 cities.

He also welcomed the Prime Minister’s twin interpretation of the word “FDI”s as “First Develop India” and also “Foreign Direct Investment” by emphasizing on manufacturing activities within India by local investors.

Mr. Dalmia hoped that a favourable climate for Indian entrepreneurs will be created by removing many irritants relating to refund of drawback amounts, export benefits and local levies and taxes.

He was of the opinion that the textile industry was heavily dependent on exports, as it had a surplus of 30% across the value chain in the production of fibres, yarns, fabrics, home textiles and garments.

“This surplus needs to be exported for which the Government should ensure that the export benefit under the much awaited Foreign Trade Policy are given on the basis of its stated objectives,” he informed.

Among those objectives, he said, are to encourage exports of products that create more jobs; to encourage exports that earn more net foreign exchange and also encourage exports by compensating extra freight costs to distant markets.

The textile sector eminently met all these objectives and should get the higher levels of export benefits as it will promote labour intensive growth in the country.

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