Home / Knowledge / News / Textiles / Govt to encourage PEs in textile sector: Mr Sajjan Jindal
Govt to encourage PEs in textile sector: Mr Sajjan Jindal
13
Aug '08
Underlining the need of fresh investment in capacity expansion, modern technology and machines, The Associated Chambers of Commerce and Industry of India has suggested entry of the global manufacturers and private equity funds in Indian textile sector to invest in partnership with the small-scale textile units based in India.

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 ASSOCHAM President, Mr. Sajjan Jindal.

In a report brought out by ASSOCHAM on Indian Textile: Weaving Global Spin, it is recommended to 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.

As the textile sector is struggling with declining exports due to strong domestic currency, the report stated that Indian textile and garments exports are highly concentrated in the regions of America and European Union.

Huge opportunities lie for the strategic expansion of the export market in the regions of Middle East & North Africa and Sub-Saharan Africa but the high risk nature, massive investments and unstable economic conditions at the short term period calls for special fiscal and monetary incentives to be given for the new ventures for a specified time period.

The report has identified that Special Economic Zones for Textiles and boom in the retail industry are expected to provide necessary boost to the domestic demand and production.

The highly fragmented nature of the industry calls for gearing of mergers and acquisition activity which could pull through investment and facilitate technology modernization and market expansion.

It says that the textile SEZs would help in growth of the sector by providing better pricing option due to cost efficiency, brand promotion, reach to wider market network in international markets and by showcasing India's textile and garment products.

“Government should give additional incentives to the small and medium enterprises investing in manufacturing and export operations in the textile SEZs in order to harness their full potential”, commented ASSOCHAM Chief.

ASSOCHAM has also strongly proposed to incentivise the firms going global to form joint ventures, partnerships, franchisee or takeovers as this would help in expanding the market, creating brand value and help in catering the needs for latest technology in the industry.

The report findings have shown that the textile sector which contributes 10.9 per cent in IIP and 13.73 per cent in manufacturing has grown at the compound annual rate of 4.6 per cent during the period FY01 to FY07 while IIP and manufacturing index grew by 6.9 and 7.4 per cent.


Must ReadView All

Courtesy: Good On You

Apparel/Garments | On 14th Aug 2018

Good On You in Oz adds 500 European brands to rating app

Australia-based Good On You’s brand-rating app has recently added 500 ...

Courtesy: USDA/FAS

Textiles | On 14th Aug 2018

US cotton exports in 2017-18 highest in over a decade

Cotton exports from the US in 2017-18 reached their highest level...

India extends reverse charge mechanism suspension by 1 yr

Textiles | On 14th Aug 2018

India extends reverse charge mechanism suspension by 1 yr

The Indian Government has extended the suspension of the reverse...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search