Govt to reform infrastructure as textile sector misses targets

21 May '08

2 min read

Textile exports for the year 2007-08 amounted to US $20.5 billion dollars registering a growth of 9.4 percent while still falling short of its set target of $25 billion.

This difference of 4.5 billion dollars came as a blow to the textile industry which gave credit to rupee appreciation for this failure in achieving export targets. Textile exports grew by a mere 1.49 percent in the first half of the previous fiscal as against the year ago, while the situation improved in the second half of 2007-08.

Besides, a close to 15 percent appreciation in rupees between October 2006 and April 2008 had a devastating impact on exports of handicraft which dropped to Rs17,5370 million against Rs20,9630 million of 2006-07.

As a consequence, the Union Textile Ministry is planning to change labor laws for enhancing the competitiveness of the domestic exporters.

The ministry firmly holds that there is also a dire need to improve the existing infrastructure and create a new business orientation in line with the global trends.

As part of the medium term strategy the government has decided to continue with the Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP) and the Technology Mission on Cotton in the XIth five year plan.

Moreover, to further give a boost to the sector by improving infrastructure, the Government has also proposed to develop 10 additional textile parks by 2012 under the Scheme for Integrated Textile Parks earmarking Rs4500 million for 2008-09. This apart a total of 30 textile parks have been sanctioned for construction in future.

These integrated parks are expected to attract investments of Rs16,9530 million providing employment to 0.575 million people and producing goods worth Rs27,3860 million annually.

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