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

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Bani Batra

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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


June 2018

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

news category


Related Categories:

Advanced Search