January 17, 2002

`19'

    With the imminent abolition of quota restrictions and emergence of regional trading arrangements, the world scenario in the textiles and clothing trade is rapidly changing. The opening up of markets to the competitive trade has made the industry conscious of new threats as well as the new opportunities inherent in the emerging situation. While releasing a report on "The Market for Fabrics in Vietnam and Combodia" in New Delhi today, the Minister of Textile Shri Kashiram Rana emphasised that the textile industry should prepare itself for facing the new challenges and exploit the opportunities that a quota-free market would provide. The National Textile Policy 2000 has been formulated with the aim to prepare the industry for the post MFA era. The main features of the National Textile Policy are to invest in technological upgradation, to improve in productivity and quality and to put more thrust on increasing exports.

    Shri Rana said fabric manufacturing is one of the most significant activities and a crucial part of the vast textile industry of the country. The manufacturers should have business interaction with US, Europe and far East markets and must look for new potent markets to conduct business in a highly competitive post WTO era. Vietnam and Combodia, are the most lucrative markets for the fabrics. Keeping this fact in mind, the Ministry initiated a project to prepare a survey report on the demand for Indian fabrics in these countries, he said.

    The Minister of Textiles, stated that the future of textile exports lies mainly in garments. Hence the new Textile Policy has fixed a target of 25 billion US dollar worth of exports for clothing and ready-mades by 2010. Government has already taken the far-reaching step of de-reservation of garment industry. Other than this, de-reservation of knitwear is also an important aspect. In recognition of this, the limit for investment in the small scale industries for knitwear has been raised from Rs. One crore to Rs. Five crore which will enable small scale units to grow larger.

    The report, prepared by Northern India Textile Research Association (NITRA) in collaboration with Protech India Ltd., will be of great help to fabric manufacturers to tap the relatively untapped potential markets in these two developing countries, Shri Rana said.

    Speaking on the occasion, Chairman NITRA, Shri Sharad Jaipuria announced that NITRA would be launching a Garment Service Centre in April 2002, to cater to the needs of Garment Industry. This Centre will focus on training the manpower for garment industry, especially for the middle management and shop floor management. He said that the study made in the report has attempted to examine the fabric markets in these two countries in all its dimensions like analyzing demand and supply aspects, planning for capacity expansion, identifying new segments and customers, focusing sales campaign and many other crucial issues relevant to the fabric manufacturers for entering into these markets.

    The Ambassador of the Socialistic Republic of Vietnam, Mr Pham. Sy Tam urged upon the Indian exporters to capture the market in Vietnam as the fabric and accessories industry in Vietnam is at its nascent stage and the quality of fabrics produced there is considered inferior in terms of productivity. The garment industry in Vietnam has to rely substantially on imports of fabrics – both woven and knit and all kinds of accessories for complying with export commitments.

    The First Secretary of Royal Embassy of Combodia Mr. Kay Malay, divulged that large number of foreign investors particularly from China, South Korea, Taiwan, Indonesia are setting up manufacturing facilities in Combodia. Garment export is the life line of Combodia economy and in the absence of fabric manufacturing facilities, Combodia depends entirely on imports of fabric for its requirements.

    Speaking on the occasion, Secretary, Ministry of Textiles, Shri S.B. Mahapatra emphasised upon the exporters to gear up to meet the new challenges emerging from the Quota Free Regime. Since India has all kinds of cotton and yarn, it can emerge as the major supplier. Asia has now become the major thrust of world textile industry and about 60% of the world’s textile and garment output comes from Asia and ASEAN countries. Vietnam and Combodia after considerable infra structural facilities, low cost manufacturing options, can open unique opportunities for fabric and accessories manufacturers for setting up manufacturing facilities and establishing business in these two countries, he said.