The Hindu Business Line : India focusing on `quality' of cotton textiles for global market: Vaghela

INDIA is repositioning itself as a "quality" cotton textiles and apparels manufacturer in the international market after dismantling of the quota regime from January 1, 2005.

The Union Minister for Textiles, Mr Shankersinh Vaghela, told Business Line here that the cotton textiles items "are in our focus and the value of the `Made in India' brand is already at a premium compared to other competitors in the international market place."

He was participating in an interactive session organised by the Merchants Chamber of Commerce.

The Minister said, "We are also experimenting with niche markets for apparels produced from organic cotton in order to bypass the margin pressure and product differentiation."

The Minister said in the run-up to the free market regime, the country has established that Indian textiles products will fetch a premium over China on quality considerations.

As of now, China is ahead of us in terms of investments in the sector and scales of production, he clarified. But cheaper exports, reportedly below the cost of production, have caused serious resistance in the US and the EU, Mr Vaghela pointed out.

Referring to earlier moves by the US textiles manufacturers and some least developed countries for continuation of the quota regime in some form or the other, in the context of China, the Minister said: "We have been successful in avoiding such transitional pitfalls ahead of the new era in the textiles trade and at the same time, stood our ground at the WTO negotiations."

He said the textiles sector was likely to meet the target of fresh investments - both private and public - of Rs 12,000 crore this fiscal.

"The momentum is catching up fast. We expect to maintain the level of investment during the next three-four years. New investments of about Rs 9,000 crore have already been made," he added.