Mr. Dayanithi Maran Union Textile Minister announced here that the Textile Industry was the first to come out of the recession he was speaking at the textile industry roundtable Organized by the confedaration of indian indutry (CII)
There was speculation in the industry that profits had been shrinking recession had hit india for just nine months Now most of the companies were posting profits but there was still scope for improvement the minister opined. currently more then 50 per cent of production was exported but the industry also needed to focus on the domestic market , Mr Maran as serted.
on the issue faced by the industry the minister observed that the legacy issues had to be over come and the industry needed to look at aggressive investments in order to meet the challenges posed by competing countries like china .
The Minister Clarified that the government did not have a largr role to paly since the stimulus was announced and what was required were new ideas which would sharpen the competitiveness of the industry as a whole .
The Government had provided stimulus packages to the industry as and when they were required . During the recession a stimulus package was given within 72 hours to the industry .
About 70 per cent beneficiaries of the government funding for capital investment are spinning mills and the least is garment units whereas the garments generate the maximum employment he added.
Mr Maran also disclosed that the National fibre policy (NEP) (aimed at restoring the competitiveness of the industry may be spelled out in 2010 -11
The Making of the national fibre policy is in its final stages and will be ready by march -end .
The New Policy was likely to benefit sectors such as cotton cotton yarn and man made fibres to garments the spinning sector exp[orders and domestic markets .
The need for such a policy was felt because of several industry lobbies having conflicting interests . In the $40 - Billion (Rs1.8lakh core) domestic markets over 60 per cent is taken by cotton textiles and the rest by man -made fibres .
On the focus of his ministry ha said that the exporters and technical textiles would be the key focus areas in the future. However the exporters are more dependent on the European and US markets both markets have a tendency of parallel movement and they boom together . and also fall together Exporters should focus on other big markets also . The Entire US import markets fell by 12.04 per cent. A Slimier trend is seen in the EU Markets Mr Maran observed.
On the sectors growth plan ahead he said Domestic textile consumption is the third largest in the world . In this environment we have targeted a growth path at 12 per cent for five years and global trade share of 7 percent we have to focus on the rural market . malls and retail space created by malls are not the solution to increasing the business garment companies should focus on the big rural market too. however they try to compete more with the international brands which sell their products at vey high prices.
CII Wish- List
CII has sought extension of the stimulus packages for the textile sector untill exports move in to positive territory .
Though the textile sector eas satisfied with the stimulus support extended last year to tide over economic recession exports continue to be negative said Mr Manikam Ramaswamy chairman CII s policy sub - committee , and also chairman and managing director , Loyal Textiles .
CII Also sought allocation of at least Rs. 5000 crore by the union government to clear two quarter subsidy arrears due to textile units under the Technology upgradation fund scheme (TUFS) and to cover the amount that may fall due in 2010 -11 Mr. Ramaswamy pointed out that the 2009-10 arrears (For Two Quaters) worked out to around Rs. 1500 Crore.
CIi Also waiver of customs duty on polyester to make the staple fabric of the poorer sections of society more affordable .
According to Mr Ramaswamy polyester yarns are Currently available at 15 -17 per cent more then international market price because of customs duty levied on them.
Mr. T. Kannan Chairman of CII National Committee on Textiles and managing director of Thiagarajar Mills, believed that the industry needed to scale-up on productivity through clustering. "Integrated textile parks operating on gas - since the electricity availability is still an issue should be set up close to these clusters." He also appealed to the Minister to extend TUFS and welcomed his move to encourage FDI in the industry. The roundtable saw participation of all key players in the sector, including the machinery manufacturers.
There was speculation in the industry that profits had been shrinking recession had hit india for just nine months Now most of the companies were posting profits but there was still scope for improvement the minister opined. currently more then 50 per cent of production was exported but the industry also needed to focus on the domestic market , Mr Maran as serted.
on the issue faced by the industry the minister observed that the legacy issues had to be over come and the industry needed to look at aggressive investments in order to meet the challenges posed by competing countries like china .
The Minister Clarified that the government did not have a largr role to paly since the stimulus was announced and what was required were new ideas which would sharpen the competitiveness of the industry as a whole .
The Government had provided stimulus packages to the industry as and when they were required . During the recession a stimulus package was given within 72 hours to the industry .
About 70 per cent beneficiaries of the government funding for capital investment are spinning mills and the least is garment units whereas the garments generate the maximum employment he added.
Mr Maran also disclosed that the National fibre policy (NEP) (aimed at restoring the competitiveness of the industry may be spelled out in 2010 -11
The Making of the national fibre policy is in its final stages and will be ready by march -end .
The New Policy was likely to benefit sectors such as cotton cotton yarn and man made fibres to garments the spinning sector exp[orders and domestic markets .
The need for such a policy was felt because of several industry lobbies having conflicting interests . In the $40 - Billion (Rs1.8lakh core) domestic markets over 60 per cent is taken by cotton textiles and the rest by man -made fibres .
On the focus of his ministry ha said that the exporters and technical textiles would be the key focus areas in the future. However the exporters are more dependent on the European and US markets both markets have a tendency of parallel movement and they boom together . and also fall together Exporters should focus on other big markets also . The Entire US import markets fell by 12.04 per cent. A Slimier trend is seen in the EU Markets Mr Maran observed.
On the sectors growth plan ahead he said Domestic textile consumption is the third largest in the world . In this environment we have targeted a growth path at 12 per cent for five years and global trade share of 7 percent we have to focus on the rural market . malls and retail space created by malls are not the solution to increasing the business garment companies should focus on the big rural market too. however they try to compete more with the international brands which sell their products at vey high prices.
CII Wish- List
CII has sought extension of the stimulus packages for the textile sector untill exports move in to positive territory .
Though the textile sector eas satisfied with the stimulus support extended last year to tide over economic recession exports continue to be negative said Mr Manikam Ramaswamy chairman CII s policy sub - committee , and also chairman and managing director , Loyal Textiles .
CII Also sought allocation of at least Rs. 5000 crore by the union government to clear two quarter subsidy arrears due to textile units under the Technology upgradation fund scheme (TUFS) and to cover the amount that may fall due in 2010 -11 Mr. Ramaswamy pointed out that the 2009-10 arrears (For Two Quaters) worked out to around Rs. 1500 Crore.
CIi Also waiver of customs duty on polyester to make the staple fabric of the poorer sections of society more affordable .
According to Mr Ramaswamy polyester yarns are Currently available at 15 -17 per cent more then international market price because of customs duty levied on them.
Mr. T. Kannan Chairman of CII National Committee on Textiles and managing director of Thiagarajar Mills, believed that the industry needed to scale-up on productivity through clustering. "Integrated textile parks operating on gas - since the electricity availability is still an issue should be set up close to these clusters." He also appealed to the Minister to extend TUFS and welcomed his move to encourage FDI in the industry. The roundtable saw participation of all key players in the sector, including the machinery manufacturers.
