Besides associations, our team made sure to take reviews of industry players too, and interviewed Mr Debashish Poddar, CEO BirlaCotsyn. We asked him about the consequences that he envisages post TUFS suspension. He replied- “It will definitely have a negative impact on the growth of the industry. In last 10 years or so we have seen lot of investment has taken place under TUF subsidy and industry has seen a positive growth. Except some months of recessions in 2008/09, industry has done well right from spinning to retailing specially, since 2004/05.
Still industry has to do lot of up-gradation in particularly processing sector which is highly critical in terms of offering products of international standards. We have also seen a very good growth in export front in last 5/6 years as we have started making better quality product in a most cost competitive manner which has helped us to bag many prestigious export orders. Lot of European and American stores have kept faith on us. All such business opportunity growth might face a big challenge.”
Mr Poddar also confirmed that in past his company has availed the benefit of the scheme and is aspiring to take benefit in future too, subject to continuation of the scheme. He asserts –“policy makers have always given importance to the industry petitions in past and I am sure that this time also they will give a huge thought before taking any final decision.” He hopes, before taking any decision, policy makers will also keep in mind the facts that the sector is one of the largest and oldest one in the country, as well as it employs nearly 35 million persons (After agriculture is the second-highest employer in the country).
“It contributes: 4% of GDP, 14% of industrial production, 9% of total excise collection and 16% of country`s total export earnings,” underlines Mr Poddar.
Mr Keshav Sharma, Director, Geesun India Incorporation, presented his case by describing –“It will surely effect the growth of textile industry. As textile industry is the major part of world economy after the agriculture. But suspension of such schemes by the government will decline the interest of the investor, and the business man to setup or to enhance the activity in this industry resulting to a static productivity and increasing demand will automatically result in price rise of the textile and inflation.”
He elucidated the aftermaths on his business. He straightened out that this price rise of the garment and daily wear will further cause people to buy limited, just to their needs, which will affect the growth and profits. He also acknowledged his company to be one of the TUFS fund allotted company in past, and he aspires to file for the scheme in coming times too. However, he is skeptical if the policy makers would heed to the petitions by industry, in this line.
Fibre2fashion News Desk, India
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