Interviews
Minister of Textiles invites Japanese investment to India
22 Jul '09
5 min read
Emphasizing the scale and size of Indian apparel market, which is valued at US$ 30 billion and is growing @ 18% , the Minister said that most of the top global apparel retailers have their scouring network in India like JC Penney, Nautica, Dockers, Bed Bath & Beyond, Target, Kohl's, Liz, cK, Sprit, M&S, GAP, United Colors of Benetton, Mango, Zara and Dillard's. Informing the gathering that majors Japanese corporations like Suzuki, Mitsui Corporation, Toyota Motor Corporation, Sony, and Honda have successfully invested in India, Mr Maran stated that Japanese textiles majors like Marubeni & Toho Rayon Company, Tokai Senko, Nihon Sanmo Dyeing Company Ltd. and Nisshinbo have tie ups with Indian Industry. The Minister emphasized that this process needs to be accelerated and we think that Companies like Itochu, Toray, Teijin, Asahi Kasei, Gunze among others have potential market in India.
While outlining the various incentives given by the Government of India in Textiles Sector , Mr Maran said that the Government has allowed 100% FDI in textiles sector and launched trend setting initiatives such as the Technology Upgradation Fund Scheme(TUFS), and Scheme for Integrated Textiles Parks (SITP). TUFS ensures the availability of bank finance at rates comparable to global rates. Under this Scheme, the Government reimburses 4% to 5% of the interest charged by banks and financial institutions, thereby ensuring credit availability for units planning to upgrade technology. The Scheme spans almost all the segments of the textiles industry.
Explaining the salient features of SITP , Mr Maran said that it provides the industry an opportunity to set up world class infrastructure facilities for textiles units. SITP is based on Public Private Partnership (PPP) model and is implemented through a Special Purpose Vehicles (SPV), where Industry, Associations/Group of Entrepreneurs are the main promoters. The Government of India's support by way of Grant or Equity is limited to 40% of the project cost for infrastructure components subject to a ceiling of Rs. 40 crore. Thirty nine textiles parks are being set up throughout the country under the Scheme, and these parks are expected to attract an investment of US$ 900 million.
Concluding his address on a note of optimism, Mr Maran said that India, which is the one of the bright spots , in otherwise bleak global economic scenario, with ever increasing per capita, household and discretionary income and with US$ 372 billion retail Industry will be an attractive destination for Japanese Investment in coming years. He said that 11 rounds of Comprehensive Economic Partnership Agreement ( CEPA) between both countries have been completed and he hoped that the talks on this would be completed by the end of this year.
Earlier during the day, Mr Maran inaugurated the Indian Pavilion at Japan International Fashion Fair ( JIFF), known as Mega Apparel and Textile Show, at Tokyo. 44 Indian textiles and clothing exporters are displaying their products through 50 stalls. Mr Maran has had fruitful meetings with Mr. Takeo Yamaoka, Chairman , JUKI Corporation , the largest Japan sewing machine manufacturer and Mr. Akira Onishi, Chairman , Kirloskar Toyoda, the leading Japanese textiles machinery manufacturer along with his delegation .
While outlining the various incentives given by the Government of India in Textiles Sector , Mr Maran said that the Government has allowed 100% FDI in textiles sector and launched trend setting initiatives such as the Technology Upgradation Fund Scheme(TUFS), and Scheme for Integrated Textiles Parks (SITP). TUFS ensures the availability of bank finance at rates comparable to global rates. Under this Scheme, the Government reimburses 4% to 5% of the interest charged by banks and financial institutions, thereby ensuring credit availability for units planning to upgrade technology. The Scheme spans almost all the segments of the textiles industry.
Explaining the salient features of SITP , Mr Maran said that it provides the industry an opportunity to set up world class infrastructure facilities for textiles units. SITP is based on Public Private Partnership (PPP) model and is implemented through a Special Purpose Vehicles (SPV), where Industry, Associations/Group of Entrepreneurs are the main promoters. The Government of India's support by way of Grant or Equity is limited to 40% of the project cost for infrastructure components subject to a ceiling of Rs. 40 crore. Thirty nine textiles parks are being set up throughout the country under the Scheme, and these parks are expected to attract an investment of US$ 900 million.
Concluding his address on a note of optimism, Mr Maran said that India, which is the one of the bright spots , in otherwise bleak global economic scenario, with ever increasing per capita, household and discretionary income and with US$ 372 billion retail Industry will be an attractive destination for Japanese Investment in coming years. He said that 11 rounds of Comprehensive Economic Partnership Agreement ( CEPA) between both countries have been completed and he hoped that the talks on this would be completed by the end of this year.
Earlier during the day, Mr Maran inaugurated the Indian Pavilion at Japan International Fashion Fair ( JIFF), known as Mega Apparel and Textile Show, at Tokyo. 44 Indian textiles and clothing exporters are displaying their products through 50 stalls. Mr Maran has had fruitful meetings with Mr. Takeo Yamaoka, Chairman , JUKI Corporation , the largest Japan sewing machine manufacturer and Mr. Akira Onishi, Chairman , Kirloskar Toyoda, the leading Japanese textiles machinery manufacturer along with his delegation .
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