Global melt down presents excellent opportunities in areaswhere India has a positive image in the International market.


Indian textiles have found very good acceptance the worldover. If we work a little more towards our competencies it will be easy to increaseour exports substantially.


The major thrust areas within the realm of the textile industryinclude employment generation, inclusive growth and sustainability.


To mitigate the impact of the crisis, a growing number ofAsian economies have announced economic stimulus packages. Though thesepackages differ in details, many of the stimulus packages share four key features:


  1. enlarging social safety nets to promote demand from low income groups,
  2. restructuring the economy towards more local markets,
  3. helping export industries, and
  4. redirecting government funds for fast-tracking large infrastructure projects with the hope that these would quickly have growth implications.


Employment Generation


Textile industry is one of best creators of jobs for the unskilled,uneducated persons. The job is repetitive in short cycles and does not demandgreat physical effort and hence is ideally suited for the entry level workerwho In general also is not physically very strong.


The short repetitive nature of this cycle helps easy andfast training of the workers.


Given India's low per capita consumption and low growthrates, if the textile industry needs to perform to Its potential and providegainful employment to crores of persons, the process of additional job creationhas necessarily got to be export lead.


India's exports are less than 3.45% of the world trade whereasChina's exports are 30.26%, of the world trade


Therefore it is amply clear that there exists a hugeopportunity to improve our textile exports, doubling or trebling should not bea problem. Focusing on improving our exports we can create at least another 3to 5 crores new jobs for the entry level workers.


The textile industry used to be located in big cities in thelast century, today rnost of the textile industry is located in rural and a fewin semi urban areas hence employment generated by textiles does not createother infrastructure problems of further congesting the over congested citiesand towns.


NREGA- Transit lounge or Destination?


NREGA has ensured that across India minimum wages get paidfor all types of Jobs including agriculture. Agriculture being the most labour intenseof all activities is forced to mechanise and reduce the cost of cultivation.


Increased deployment of tractors, harvesters, caneharvesters, planting machines, seed drills. weeders and micro irrigationsystems are being deployed today to reduce cost of agriculture production giventhe sudden and steep increase in labour costs.


Increasing number of persons will get displaced as farm mechanisationprogresses, these persons will need to be gainfully employed.


NREGA can at the best be a transit lounge; it certainlycannot be the destination for these seeking gainful employments with decent minimumwages.


Identifying alternate employment activities that can paydecent wages and be suited for the uneducated and unskilled is the key toproductively employ the many who will need jobs and reduce the long term pressureon NREGA.


 

Inclusive Growth


Textile Industry besides creating crores of much needed jobs can also help in creating inclusive growth. Textile industry is ideally suited for uneducated unskilled women in rural areas and semi urban areas rendered surplus due to farm mechanisatlon.


Textile industry offers a stable domestic market to crores of farmers who are growing cotton.


Cotton cultivation has become one of the most profitable crop options to our farmers thanks to the very steep increase In support prices which is at most times still below the international prices.


At times when it fell below international prices there has been satisfactory market intervention by support price operators, thus ensuring very good returns to crores of farmers.


Sustainable Development


Textile industry uses predominantly agricultural raw materials uses environment friendly processes, most factories produce only non toxic waste when suitable treatment processes and eco friendly dyes and chemicals are used.


Technology is continuously bringing down specific power consumption and water usage.


The textile industry is easily the best suited industry to have inclusive growth and sustainable development.


Given the slow rate of growth In our domestic consumption if we want to produce 3 10 5 crore jobs in five years the only way forward is an export led growth. India has everything else that is required, adequate availability of raw material, technical man power, technology and machine building capacity, design and development capability, entrepreneurs who understand the requirements of different nations and nationalities and favorable funding options thanks to TUF.


It only needs to improve Its export competitiveness blunted severely by infrastructure disabilities especially power and logistics and non refund of state taxes.


Texprocil is fully aware of this huge responsibility and addressing the issue of improving the competitiveness and improving market penetration.


Encouraged by the active support and guidance of the Textile ministry, Commerce ministry and Finance ministry TEXPROClL is hopeful of fulfilling this important need of the nation. Textile exports will definitely create the much needed 3 to 5 crore jobs for the uneducated unskilled in the next 3 years given the right policy Support.


Special Status for Textiles


Given the enormous potential of the Textile Industry especially the export sector to create Sustainable Inclusive Growth by providing a stable market for crores of farmers and gainful employment to additional 5 crores of unskilled men and women in rural and semi urban areas, the Government should award a special status to the textile industry.



The author is Vice President, Texprocil