MUMBAI: The textile industry must look beyond the U.S. and Europe to ensure that it is recession-proof in the coming days, according to Union Minister for Textiles Dayanidhi Maran. Addressing the media after an interactive session with the textile industry representatives in Mumbai, Mr. Maran said a National Fibre Policy would be in place by the year-end.
He advocated a three-pronged approach to bring the textile sector back on the 7-8 per cent annual growth path. The minister expected that the National Fibre policy (NFP) would put in place a framework, remove various discrepancies and distortions in the textile sector and pave the way for growth of the domestic industry and exports. “The industry, which has had a number of segments at loggerheads with each other, needs to come together and work towards a NFP,” he said.
Second, the minister highlighted the need to develop the ‘Made in India’ brand and diversify textile markets beyond U.S. and EU countries. “The industry should make vigorous efforts to create brand equity for Indian textiles and clothing products. Indian exporters are suppliers to various international brands and the U.S. and EU markets are brand driven and by ‘brandisation’, we will be able to create a niche market for Indian textile products and ensure higher value realisation per unit”.
“We know that 60 per cent of our exports of textiles and over 70 per cent of clothing are to the U.S. and EU markets. There is an urgent need to broaden our product mix and explore new markets”.
The minister assured all help to the industry “in seeking opportunities in new markets, for promoting ‘Made in India’ brand, to withstand competition from our neighbouring countries, and overcome protectionist measures being adopted by developed countries”.
Third, the industry must take measures to promote domestic consumption of textiles and ensure that consumption increases. Mr. Maran said, “if we achieve these three steps, we will be insulated against future tough times”.
Stimulus package
He said a stimulus package was needed to boost the Rs. 220,000 crore industry and his ministry had already submitted proposals for a revival package to the Ministry of Finance. The suggested package includes tax incentives, increase in allocation for the Technology Upgradation Fund Scheme (TUFS) and funds to provide skill training to workers. The ministry plans to come out with short, medium and long-term measures to provide relief to the industry. The ministry expects to create one crore jobs in five years through skill development training and is setting up four Centres of Excellence (CoE), one each for Agrotech, Buildtech, Meditech and Geotech group of technical textiles.
Source : The Hindu