The Hindu Business Line : `Textile industry must grab opportunities to tap global market'

WITH the elimination of the multi-fibre agreement a few days ago, there is enormous opportunity for the textile industry in the country to tap the global market.

China demonstrated the scale of the market that exists globally, and it is for the Indian industry to use this opportunity, according to Dr Montek Singh Ahluwalia, Deputy Chairman, Union Planning Commission.

The country's textile industry is talking about the possibility of reaching $50 billion in a few years. This can be achieved only if the Government provides a supportive environment, he said, delivering the 30th Frank Moraes Memorial Lecture organised by the United Writers' Association.

Doing a SWOT (strengths, weaknesses, opportunities and threats) analysis for India, Dr Ahluwalia said, the country's greatest strength has been its economic growth in the last few years. Globally, the country is respected for its growth. The private sector has also contributed to a large extent in this regard. "We have done well in terms of economic growth but could achieve only 6 per cent against the targeted 8 per cent," he said.

One of the major weaknesses in the country has been the declining growth rate of the agricultural sector to less than 2 per cent, from 3.3 per cent in 1995. "We cannot expect to have a revival in the agricultural growth rate unless we address the core issue of water, which is the most important input into agriculture," Dr Ahluwalia said.

There are also major shortcomings in infrastructure, including power, ports, roads, airports, rural road and irrigation. "We have invested less in infrastructure than we need to, even to sustain the present growth rate of 6 to 7 per cent. We have relied upon infrastructure to be provided by the public sector, and for users not to pay any user charge on infrastructure. This model has run out of steam. The second stage of economic reform thus needs to focus on the marriage between public and private sector," he said.

Dr Ahluwalia said threats could be external, including economic collapse globally and fluctuating oil prices, and internal (failure to check weaknesses).

"We need to concentrate more on our internal threats," he said.

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