Abstract

Textile is the second largest employment provider in India. To support this sector, textile machinery industry forms the backbone of the textilesector. Current paper discusses various problems of Indian textile machineryindustries. Along with the problems an attempt has been made to give solutionto some of these problems. Currently Indian textile machinery industry facingsome of the major problems which hampers the growth of the industry. Some ofthese are demand of second hand machinery, technology transfer, lack ofR&D, quota system, recession, TUFS scheme etc. An address to such issuescan bring bright days to this weakening industry

Introduction

The Textile Engineering Industry (TEI) is, undoubtedly, oneof the largest component of the Indian capital goods industry and hascontributed significantly to the growth of the Indian textile industry. The TEIdirectly employs about 50,000 workers and has capital investment in the rangeof US $ 423.93 Mn. with an installed capacity of US $ 920.54 Mn. It covers over700 machineries and equipments manufacturing units; over 250 units producecomplete machinery and the remaining 450 units produce spare parts, componentsand accessories of the machinery.

The technological competitiveness of the Indian textileengineering industry presents a full spectrum of technological capabilities.While, there are few units manufacturing spinning and allied machinery close tothe international players in terms of product design capability, process designcapabilities and process technology, technological capabilities of most of theplayers manufacturing other than spinning and allied machinery is severelylimited.

The fortunes of this industry are inextricably linked withthat of textile industry. High degree of co-relation between the performancesof the two sectors is further accentuated by high elasticity of textileengineering industry to changes in the textile industry. The capital goodsvalue added contributes about 10.5 percent of the total textile manufacturingvalue added, thus establishing textile industry as a key end user deriving theperformance of the latter.

The textile industry has been doing extremely well duringthe last few years in terms of production & export and has been investingheavily in expansion and modernization of capacity. The strong demand fromdomestic and export market coupled with conducive policy environment providedby the Govt. has catalyses the growth of the textile industry. The TechnologyUpgradation Fund Scheme (TUFS) launched by the Govt. has facilitated investmentin state of the art / near state of the art benchmarked textile machineryeligible under TUFS. During the last eight years of the operation of TUFS,about US $ 28.86 Bn. worth of projects have been covered under TUFS involvinginstallation of roughly US $ 17.32 Bn. of modern machinery during the period.

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About the Authors

Surajkumar. S. Menon & Sudhir M. Dudhankar Are Students of DKTE, ICHALKARANJI

Thispaper was presented at Veermata JijabaiTechnological Institute (VJTI), Mumbai in the VASTRA 2010 a two day eventheld on Feb 19^th & 20^th, 2010