Home / Knowledge / News / Textiles / NMCC proposal on machinery subsidies faces criticism
NMCC proposal on machinery subsidies faces criticism
30
Sep '08
The National Manufacturing Competitive Council (NMCC) has recommended to provide subsidies for purchase of textile machinery to only those companies that buy from domestic suppliers.

However, some textile enterprises and government officials have regarded this proposal as impractical on grounds that India does not produce much of the critical equipment required for the manufacture of garments and textiles. It has been reported that Indian machinery meets only one-third of the requirement. Of the Rs10,000 crore worth of machinery installed in 2007, domestic companies met only 25 percent of the requirement.

Textile companies have benefited from the Technology Ugradation Fund Scheme (TUFS), since 1999. The NMCC has made a recommendation to restrict the subsidy, to spur the manufacturing sector and lift India's production, which has been averaging an annual 7 percent in the past two decades. India has nearly 700 machinery manufacturing units.

In an exclusive interview with Fibre2fashion, DK Nair, Secretary General of Confederation of Indian Textile Industry (CITI) stated, “if assistance under the scheme is restricted to machinery manufactured in India, this will render the scheme totally unviable. India has world class textile machinery for spinning which is purchased by most mills only from domestic producers.

However, we do not have acceptable levels of technology for weaving and processing machines. In fact, for all practical purposes, garment machines are not manufactured in India at all. Thus, investments under the scheme will be impractical if its benefits are restricted to purchase of domestic machines only.”

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Johan Berlin
InvestKonsult Sweden AB

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search