February 6, 2002

`19’

GLOBAL COMPETITIVENESS FOR INDIAN TEXTILE INDUSTRY

    With the complete phasing out of quantitative restrictions and consequent global integration of market after the year 2004, the Textile industry will have to face many challenges and the threats. Hence there is a need to strengthen the competitive edge of the textile sector by way of public and private partnership for which a sound fiscal policy and good quality infrastructure are essential. Speaking this at the 11th seminar on "Quality and Compliances – Route to Global Competitiveness", organised by Textile Committee in New Delhi, the Secretary, Ministry of Textiles, Mr. S. B. Mahapatra said that much emphasis should be laid on quality, productivity and faster service to survive in the highly competitive global trade environment. At the same time, there should be a proper system where the quality is monitored regularly. In order to get better quality of yarn, the quality of the ginning in the mills must be improved. He said there are nearly 4000 ginning mills in the country. Even the 800 mills with most modern infrastructure would be sufficient to cater to the needs of quantitative yarn. Most of the fabric in India is obtained from the powerlooms which are in a pathetic condition. Under the Textile Package announced in the budget 2000-01, an ambitions programme for modernisation of 2,50,000 looms and induction of 50,000 shuttles looms in decentralised powerloom sector has been initiated, besides setting up of integrated apparel parks scheme for bridging the gap in critical infrastructure in Textile clusters and dereservation of garment sector from S.S.I. Another important scheme – Technology Mission on Cotton with an outlay of Rs. 600 crore was launched in Feb. 2000, aiming at improving the quality and productivity of cotton in order to provide quality raw material to the industry. Upto Jan. 2002, a total of 150 modern Ginning & Pressing units at the cost of Rs. 173.6 crore and 51 market yards in different states at the cost of Rs. 73.39 crores have been approved for modernisation. He expressed the hope that by the end of Tenth Plan, 50% of cotton produced will be processed in the modern G&P Units. Today, since market is becoming customer driven, better quality standards, image building and customer satisfaction have assumed critical importance in accessing the markets.

    Speaking on the occasion, Mr. Virender Uppal, Chairman, Apparel Export Promotion Council (AEPC) urged that suitable modification in Indian Labour laws should be made on immediate basis as these laws have not been amended since 1948. For generating enough interest among the garment exporters, the Textiles Committee should publish success stories for various projects undertaken by the Ministry.

    While addressing the workshop, Secretary, TextilesCommittee, Mr. R.C.M. Reddy said with the globalisation of trade and the complete dismantling of formal trade barriers and protections by the end of 2004, only those companies whose fundamentals are strong and who are conscious of quality and price competitiveness will survive.Unless the textile sector adopt quality culture as part of the organisational philosophy, it will be difficult for Indian Textiles sector to survive.