Is Indian textile sector loosing its global competitiveness?

29 Jun '09

4 min read

Old DDB and DEPB rates should also be restored along with ensuring that polyester fibres and cotton are available at international prices to Indian manufacturer-exporters either by policy or though a differential price refund mechanism. 4 percent interest subvention should also be restored and a focus initiative to promote exports of fabrics, knits and home textiles should be initiated.

A mechanism should be devised to help technical textile exports and performance and functional textile product exports. Import of inputs through advance license and in addition should be allowed and DDB on the local value addition or a 10 percent duty free import of required inputs should be given to help textile exports regain their lost glory.

Amongst the long term solutions for increasing exports of cotton textiles, the government should assist textile exporters build brand India and Indian brands. It should also negotiate for free trade with European Union and reduced tariff for textiles in the countries where we have a negative trade balance and assist exporters to fight anti-subsidy duties diplomatically.

Once the competitiveness is restored, growth of 25 percent CAGR over the next 5 years is possible which will lead to creation of an additional 2.5 million jobs every year and also help in attracting FDI and rapidly scale up the textile industry and create a vibrant textile industry which India can be proud of and at the same time balance the interests of each and every stake holder.

Fibre2fashion News Desk - India

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