Dayanidhi Maran's comprehensive strategy for Indian Textiles Industry

The Union Minister of Textiles Thiru Dayanidhi Maran assured the industry that the Government will take adequate steps in the short, medium and long term to provide relief to the textiles industry. He was releasing the study report titled “Impact of Economic Slow Down on Textile and clothing Industry” conducted by ICRA Management Consulting Services Ltd. (iMaCS) on behalf Confederation of Indian Textiles Industry (CITI), Cotton Textiles Export Promotion Council (TEXPROCIL), Apparel Export Promotion Council (AEPC) and Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) here today.

Thiru Maran said as part of a short term strategy, the Government will strive to rationalize fiscal structure, exempt Service tax, reduce interest rates on pre-and post shipment credit, and facilitate faster clearance of arrears of terminal Excise Duties and Central Sales Tax. As a part of the medium term strategy, the Government will impart momentum to the implementation of the Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textiles Parks (SITP) and the Technology Mission on Cotton (TMC) in the XIth Five Year Plan period. In the long run, there is a need for improvement in the infrastructure, labour law reforms, and create a new business orientation by the industry in line with the global trends. In addition, the Minister stated that his Ministry will initiate consultation process immediately to form a National Fibre Policy. He urged the industry to come forward to give their inputs so as to create a single forum representing all stake holders of textiles industry.

Thiru Maran said that the major markets for Indian Textiles and Clothing (T&C) export are the United States of America and European Union and they are showing sign of recovery. However, there is a need to diversify T&C exports to new markets like Gulf Cooperation Countries (GCC) namely Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and UAE, Africa, Latin America, Russia and Oceania. The Government will extend a helping hand to the industry to seek opportunities in the new markets, to withstand competition from our neighboring countries, and overcome protectionist measures being adopted by developed countries, said the Minister.