Home / Knowledge / News / Textiles / SIMA demands level playing field for textile industry
SIMA demands level playing field for textile industry
10
Aug '15
Chairman of The Southern India Mills' Association (SIMA) T Rajkumar, has appealed to Prime Minister to announce slew of policy initiatives to create a level playing field for the textile industry which employs over 110 million people to compete in the global environment and achieve the envisaged growth rate.

At a press conference, Rajkumar said that the industry could achieve over Rs 3 lakhs crore investments during the last 15 years and it has potential to attract Rs 2 lakhs crores in the next five years, if the right policies were in place. He stated that taking advantage of the surplus cotton, spinning capacity, fabric production capacity could be converted into a significant amount of foreign exchange which could greatly help the government to overcome the balance of payment issue.

He said external factors are curtailing the growth cotton based textile industry which is facing yet another long drawn recession for the last 15 months. Spinning and powerloom are the worst affected.

Though various state governments have announced attractive textile policies and aggressively marketing for attracting investments, these policies have become a major threat for the existing capacities to compete with the new capacities being created.

He claimed that in the absence of a level playing field due to higher rates of duties for Indian textile products in various major international markets, higher raw material cost, high cost of funding and high transaction cost, the industry is not in a position to achieve its potential growth rate.

Rajkumar pointed out that under these circumstances, it is very essential for the central government to come out with a policy initiative to strengthen the competitiveness of the Indian textile industry. This would enable the industry to achieve the growth rate of 25 to 35 percent in the short run and 20 per cent growth rate in the long run. This industry could achieve a business size of $500 billion by 2025 from the current level of $110 billion, if the right policies are in place.

Rajkumar stated that Vietnam and Cambodia have zero duty access and Pakistan has zero duty access for fabrics and 5 per cent duty for garments and made-ups in China while the Indian yarn attracts 3.5 per cent duty, fabric attracts 8.5 per cent duty and made-up & garments attracts 14 per cent duty. Pakistan, Bangladesh and Cambodia have zero duty access in EU and Bangladesh and Cambodia have zero duty access in US.

He appealed to the Centre to expedite FTAs with China, EU and other countries on a war footing and create a level playing field to enable India to grab the opportunities emerging in these countries particularly China which had already started cutting down its production.


Must ReadView All

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

India's retail sales to cross $1,244.58 bn by 2018: study

Apparel/Garments | On 20th Jul 2018

India's retail sales to cross $1,244.58 bn by 2018: study

Growing at a rate of about 15 per cent and registering a double digit ...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Urmil Arya

Sushila International, a well established textile organisation established ...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search