MEASURES TO STRENGTHEN THE TEXTILE INDUSTRY FOR MEETING GLOBAL COMPETITION

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The textile exports during the period April-December 2002 have amounted to US$8849.4 million which when compared with the exports of US$ 7814.6 million during the corresponding period of 2001 show a growth of 13.2 per cent. This means that 59 per cent of the export target of US$15,005 million fixed for the year 2002-03 has been achieved during the period April-December, 2002. Though the textile exports declined by 1.9 per cent in 1^st quarter (April-June, 2002), exports have increased by 18.6 per cent in 2^nd quarter (July-September 2002) and 24.8 per cent in 3^rd quarter (October, December 2002). This indicates the downtrend in textile exports has been reversed and they are back on path of export growth. However, the exports during the year was affected by the general slowdown in the economies of some of India’s major trading partners like the US; Iraq war condition; increased competition from countries like China, Bangladesh; high production cost and low productivity due to lack of modernisation of textile industry.

The Government have been taking a number of measures to strengthen the textile industry for meeting the growing global competition and for achieving export targets. The Government has de-reserved the woven segment of readymade garment from the SSI sector. It has also raised the SSI investment limit for knitted segment to Rs. 5 crore. The Technology Upgradation Fund Scheme (TUFS) was made operational from 1.4.1999 to facilitate the modernisation and upgradation of the sector. Weaving, processing and garment machinery, which are covered under TUFS, have been extended the facility of accelerated depreciation at the rate of 50 per cent. Cost of machinery has also been reduced through Fiscal Policy measures. This further encourages modernisation. With a view to encouraging backward integration, the custom duty on shuttleless looms and other important textile machinery items has been brought down to 5 per cent. National Institute for Fashion Technology (NIFT), its six branches and Apparel Training & Design Centres (ATDCs) are running various courses/programmes to meet skilled manpower requirements of textile industry especially apparel in the field of design, merchandising and marketing. Facilities by way of eco-testing laboratories have been created to enable exporters to get the garments/textiles pre-tested for conforming to the requirements of importing countries. The Government has launched a centrally sponsored scheme titled "Apparel Park for Export Scheme" for imparting focused thrust for setting up of apparel manufacturing units of international standards at potential growth centres and to give fillip to exports. For upgrading infrastructure facilities at important textile centres, a scheme ‘Textile Centre Infrastructure Development Scheme (TCIDS) has been launched.

This was stated by the Minister of Textiles, Shri Kashiram Rana, in reply to a question by Shri Bhupendrasinh Solanki and Shri Sultan Salahuddin Owaisi in the Lok Sabha today.