How do you evaluate prospects of Used textile machinery sector in India? Any areas of Grievances?
Used textile machinery sector in India is very
vast and growing with the pace of approx 20% per annum. We see further increase
in demand as quick and easy finance available from financial institutions. Used
machines decreases the overall project cost of mills, helps them to compete in
international market, and saves government FOREX. In fact, by making manufacturers
competitive, it helps them earn valuable FOREX and thus, maintain trade
In spite of this fact, the sector is left as a
neglected sector. Many countries like Bangladesh,
or even European nations want to import machines, which are available in Indian
Market, but due to Government policy, we cannot re-export these used machines.
Prevailing government policies impede trade of used machines, sending advances
etc., for trade purpose, and normally companies engaged in such business are
totally depended upon commission as their profit rather than trade third world
TUFS though is a beneficial policy needs to be little more encouraging by provision of extra benefit to companies who like to upgrade their technology by selling their obsolete machines (exporting) and importing new technology machines. Permission should be given on immediate base to such companies who like to sell their existing machines and want to buy upgraded version of such machines.
Published on: 10/03/2011
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