• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

"More pertinent is the fact that 92 per cent of the exports are non-quota products." Thus, the industry is poised to tackle the quota free regime in 2005, Mr Rakesh Mehra said.

Mumbai , Sept. 30

THE Indian synthetic and rayon industry will have to pursue new partnerships, joint ventures, common sales agreement and co-branding exercises if it is to establish its presence in new and difficult markets, according to the Chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), Mr Rakesh Mehra.

Speaking at the council's 49th annual general meeting in Mumbai on Tuesday, he said that synthetic and rayon textile exports touched an all-time high of Rs 7,629 crore in 2002-03, a 29 per cent growth over the previous financial year. It had surpassed its target for the year by Rs 450 crore.

He said that this was despite a fiercely competitive global textile scenario and appreciating rupee.

"More pertinent is the fact that 92 per cent of the exports are non-quota products." Thus, the industry is poised to tackle the quota free regime in 2005.

Mr Mehra said that exports were directed at 177 countries, with West Asia accounting for over 32 per cent, the EU 23 per cent and the US 11 per cent.

Value addition in fabrics and yarns dominated the export product basket. Yarns grew 35 per cent over the previous year, clocking Rs 2,353 crore, while fabrics grew 24 per cent to Rs 3,677 crore.

The made-up sector accounted for 18 per cent of the export basket — in value terms, Rs 1,377 crore.

Despite the progress, Mr Mehra said there were still "glaring gaps" in the processing, finishing and garment manufacturing sectors, which "still prevent us from being global players".

The made-ups sector was also handicapped by a lack of funds, co-ordination and modern inputs of designing and outdated labour practices.

Mr Mehra also said that the council was looking to the Textile Ministry for aggressive bilateral negotiations with the developed countries of the West to ensure preferential duty structure in their markets.

This was important as a many competitors are expected to enjoy such preferential fiscal duties in the post-quota regime.

"Infrastructure needs to be improved. Congestion at ports is leading to shipment delays; slippages on the infrastructure front would diminish the competitiveness of Indian exporters."

The council's promotions grew its exports 16-125 per cent over the previous year, and similar programmes are scheduled for 2003-04 to find prospective markets, and to maintain its presence in existing markets.

Article E-Mail :: Comment :: Syndication

Stories in this Section
GKM ties up with US co

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line