Govt to encourage Private Equity in textiles, ASSOCHAM
06 Dec '07
3 min read
Recognizing the need of fresh investment in capacity expansion, modern technology and machine installation in Indian textile sector, The Associated Chambers of Commerce and Industry of India has strongly recommended encouraging the global manufacturers and private equity funds to invest in partnership with the small-scale textile units based in India to boost investment in the sector.
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 Mr. Venugopal N Dhoot, President, ASSOCHAM.
The ASSOCHAM Research Bureau has prepared an extensive Report on "Indian Textiles- weaving a global spin" which has been submitted to the government. The report has recommended 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.
Government has recently announced that the textile exports have declined by 22 per cent since April this year and around 20 lakh jobs were cut by the textile enterprises unable to bear the Rupee brunt.
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