According to Mr Maran, the Government will work towards reducing interest rates on pre- and post-shipment credit and facilitate faster clearance of arrears of terminal excise duties and Central Sales Tax.
He was speaking at an event organised by textile industry bodies on Friday, to release a study report “Impact of Economic Slowdown on Textile and Clothing Industry” compiled by ICRA Management and Consulting Services Ltd.
national fibre policy
Work on formulating a national fibre policy will begin immediately, according to the Textile Minister.
More jobs
Also present at the event, Ms Rita Menon, Secretary, Ministry of Textiles, said that the Ministry would work towards creating 10 million more jobs in the textile sector, which already employs 33 million people, by the end of the 11th Five-Year Plan.
Mr Maran said as a medium term strategy, the Government will look to quicken the implementation of the Technology Upgradation Fund Scheme, Scheme for Integrated Textile Parks and Technology Mission on Cotton, during the 11th Plan period. Textile exports make up for 12 per cent of India’s exports, the US and the European Union (EU) together account for 55 per cent of the textile export market for India.
Exports
However, as a result of the economic slowdown, textile exports to the US fell by almost 20 per cent by February 2009.
Mr Maran said, “We have to look for other markets and not just get bogged down to the EU and the US.”
In addition to this, almost six lakh jobs have been lost since the economic slowdown late last year.
Also, India’s exports are at a big cost disadvantage to China and even Bangladesh, Vietnam and Sri Lanka.
measures to be taken
The report has asked for certain steps to be taken by the Government to help rejuvenate the textile industry.
These include permitting contract labour, relaxation of norms in the Industrial Dispute Act, 1947 and an extension of working hours for labour.
The report has also asked the industry to explore new markets and reduce dependence on EU and the US.