Home / Knowledge / News / Textiles / Govt to encourage PEs in textile sector: Mr Sajjan Jindal
Govt to encourage PEs in textile sector: Mr Sajjan Jindal
13
Aug '08
Underlining the need of fresh investment in capacity expansion, modern technology and machines, The Associated Chambers of Commerce and Industry of India has suggested entry of the global manufacturers and private equity funds in Indian textile sector to invest in partnership with the small-scale textile units based in India.

Textile sector, victimized by strong Rupee, is suffering from rigid labour laws, technology obsolescence, fragmented structure, infrastructure constraints and lack of iconic brand which has disabled its growth potential and competitiveness in international market, an ASSOCHAM report on `Indian Textiles Sector' has stated.

“Government should provide appropriate fiscal incentives to the parties interested in investing in textile and clothing to enhance the attractiveness of the sector”, said ASSOCHAM President, Mr. Sajjan Jindal.

In a report brought out by ASSOCHAM on Indian Textile: Weaving Global Spin, it is recommended to the government to draft a five-year agenda and work jointly with industry and labour unions to refine these laws in a phased approach towards the integrated development of industry and workforce.

As the textile sector is struggling with declining exports due to strong domestic currency, the report stated that Indian textile and garments exports are highly concentrated in the regions of America and European Union.

Huge opportunities lie for the strategic expansion of the export market in the regions of Middle East & North Africa and Sub-Saharan Africa but the high risk nature, massive investments and unstable economic conditions at the short term period calls for special fiscal and monetary incentives to be given for the new ventures for a specified time period.

The report has identified that Special Economic Zones for Textiles and boom in the retail industry are expected to provide necessary boost to the domestic demand and production.

The highly fragmented nature of the industry calls for gearing of mergers and acquisition activity which could pull through investment and facilitate technology modernization and market expansion.

It says that the textile SEZs would help in growth of the sector by providing better pricing option due to cost efficiency, brand promotion, reach to wider market network in international markets and by showcasing India's textile and garment products.

“Government should give additional incentives to the small and medium enterprises investing in manufacturing and export operations in the textile SEZs in order to harness their full potential”, commented ASSOCHAM Chief.

ASSOCHAM has also strongly proposed to incentivise the firms going global to form joint ventures, partnerships, franchisee or takeovers as this would help in expanding the market, creating brand value and help in catering the needs for latest technology in the industry.

The report findings have shown that the textile sector which contributes 10.9 per cent in IIP and 13.73 per cent in manufacturing has grown at the compound annual rate of 4.6 per cent during the period FY01 to FY07 while IIP and manufacturing index grew by 6.9 and 7.4 per cent.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Tony Ward
Tony Ward

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search