Consultative process to start to formulate National Fibre Policy – Mr Maran
12 Jun '09
4 min read
Union Minister of Textiles Thiru Dayanidhi Maran
The Union Minister of Textiles Thiru Dayanidhi Maran assured the industry that the Government will take adequate steps in the short, medium and long term to provide relief to the textiles industry.
He was releasing the study report titled 'Impact of Economic Slow Down on Textile and clothing Industry' conducted by ICRA Management Consulting Services Ltd. (iMaCS) on behalf Confederation of Indian Textiles Industry (CITI), Cotton Textiles Export Promotion Council (TEXPROCIL), Apparel Export Promotion Council (AEPC) and Synthetic and Rayon Textiles Export Promotion Council (SRTEPC).
Thiru Maran said ¡§as part of a short term strategy, the Government will strive to rationalize fiscal structure, exempt Service tax, reduce interest rates on pre-and post shipment credit, and facilitate faster clearance of arrears of terminal Excise Duties and Central Sales Tax.
As a part of the medium term strategy, the Government will impart momentum to the implementation of the Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textiles Parks (SITP) and the Technology Mission on Cotton (TMC) in the XIth Five Year Plan period. In the long run, there is a need for improvement in the infrastructure, labour law reforms, and create a new business orientation by the industry in line with the global trends.¡¨ In addition, the Minister stated that his Ministry will initiate consultation process immediately to form a National Fibre Policy. He urged the industry to come forward to give their inputs so as to create a single forum representing all stake holders of textiles industry.
Thiru Maran said that the major markets for Indian Textiles and Clothing (T&C) export are the United States of America and European Union and they are showing sign of recovery. However, there is a need to diversify T&C exports to new markets like Gulf Cooperation Countries (GCC) namely Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and UAE, Africa, Latin America, Russia and Oceania. The Government will extend a helping hand to the industry to seek opportunities in the new markets, to withstand competition from our neighboring countries, and overcome protectionist measures being adopted by developed countries, said the Minister.
The Minister reiterated that the Government in coming years will strive to create one crore employment opportunities in the sector; build world-class, state-of-the-art manufacturing capacities; achieve a dominant global standing in the manufacture and export of textiles and clothing; and equip the textiles industry to withstand the pressure of import penetration and maintain its dominance in the growing domestic market.
On the occasion, Smt Rita Menon, Secretary Textiles also addressed the gathering and released the CITI Directory 2009.
Summary of the Study Report ¡§Impact of Economic Slowdown on Textiles and Clothing Industry¨.
The Indian Textiles and Clothing exports contribute around 12% to Indian foreign exchange earnings. During the period April 2008 to February 2009, T&C exports have shown a flat growth on account of economic slowdown in major T&C export markets. This has also impacted on the overall growth of Textiles industry. To study the impact of slowdown, this report was commissioned by Confederation of Indian Textiles Industry (CITI), Cotton Textiles Export Promotion Council (TEXPROCIL), Apparel Export Promotion Council (AEPC) and Synthetic and Rayon Textiles Export Promotion Council (SRTEPC).