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— G.R.N. Somashekar

Way forward: Mr Shankersinh Vaghela (centre), Union Textile Minister, Mr E.V.K.S. Elangovan (right), Minister of State for Textiles, and Mr Hanumanthappa, Chairman, Silk Board, at a press conference in Bangalore on Monday.

Our Bureau

Bangalore, July 7 The Government is considering a proposal to withdraw import duty on cotton, said Mr Shankersinh Vaghela, Union Minister for Textiles.

“The Government is in discussions regarding withdrawing the 14 per cent import duty on cotton in order to benefit cotton farmers. It is under consideration,” said Mr Vaghela, who was in the city to address the media on the textiles sector’s progress during the Government’s four-year tenure.

Cotton production in the country in 2007-08 was 315 lakh bales (170 kg each) – this is 20.51 per cent of the global production.

Textile exports in 2007-08 were $20.5 billion; they areexpected to increase by 20 per cent this fiscal . Mr Vaghela said the country will try and achieve the target of $50 billion by 2010. Even with the rupee fluctuation earlier, there will be no revision of this target, he added. “The textile sector is today a sunrise sector. India is doing well in cotton exports. After the rising rupee valuation, the Government of India gave some concessions. Exporters are happy today and doing well in the American and European markets,” he said.

The Union Minister of State for Textiles, Mr E.V.K.S. Elangovan, said the ministry is considering a proposal for exporters to minimise the impact of the rupee.

The UPA government’s Eleventh Plan (2007-2012) is targeting an investment of Rs 1,50,600 crore in the textiles sector. The Plan allocation has been increased by 11.45 per cent in 2008-09 at Rs 2,500 crore from the previous year.

Thirty integrated textiles parks have been sanctioned under the Scheme for Integrated Textiles Park. These parks, when operational (by end of 2008-09), are expected to attract an investment of Rs 17,000 crore. Ten more parks will be set up by 20112. NIFT (National Institute of Fashion Technology) centres will be set up soon in Patna, Bhopal and Shillong.

The Technology Upgradation Fund has been extended till 2012; TUFS has attracted an investment of Rs 1,21,396 crore, according to a release.

The investments in the sector are expected to create 17.37 million additional jobs by 2012.

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