• Linkdin

Post recession European machinery manufacturers eye India

16 Dec '09
4 min read

“This helped the textile industry to some extent and the acute demand recession faced by the domestic textile engineering industry is on the wane at present and in the meantime, the Indian Government has made an attempt to reach out to the European manufacturers in a bid to attract FDI in the field of textile machinery manufacturing in India and it is reported that some manufacturers have shown their inclination in this regard.

“However, it is a fact that prevalent rates of duties and taxes and the inverted duty structure along with local taxes, transaction taxes, etc. do not create a favourable climate for the FDI. Besides, the domestic manufacturers are suffering from import of used (second hand) machinery which are being imported in large numbers by the textile industry specifically by the decentralized sectors.

He concluded by saying, “The overall situation is not conducive for any foreign manufacturer to invest in India. Further, the foreign manufacturers will also have to face competition from cheaper Chinese machinery. Therefore the possibility of FDI remains doubtful in the face of the overall situation, unless of course, the Government takes adequate measures to redress the problems of the domestic textile engineering industry and makes it possible for the foreign manufacturers to manufacture machines in India at 20%-30% cheaper than the imported machine cost.”

Fibre2fashion News Desk - India

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search