Textile sector call for further reforms
Mumbai, Sept. 19
, Mr Shankersingh Vaghela, Union Minister of Textiles, on Tuesday indicated that the Government was considering extension of the Technology Upgradation Fund Scheme (TUFS) up to 2010 to further shore up the Indian textile sector.
Speaking at a function to distribute the Texprocil export awards, the Minister lauded the performance of the textile companies, assuring them that the Government will go all out to thrash out issues facing the industry.
"This sector used to be the sunset sector. But with the help of Government policies and your ambition, it has turned into a booming industry today," Mr Vaghela said.
Speaking on the occasion, Mr B.K. Patodia, Chairman of Texprocil, said the cotton textile sector has surpassed the export target of $4,200 million set for 2005-06.
Exports of cotton textiles and clothing have recorded a growth of 27.56 per cent, rising from $14 billion in 2004-05 to $17 billion in 2005-06. This growth is being driven by the increase in exports of home textiles and cotton yarn, which have grown by over 39 per cent and 27 per cent respectively.
More reforms needed
However, Mr Patodia stressed the need for further reforms. "There is an urgent need to address labour and power issues as well as a need to reduce transaction costs, as all this is affecting our competitiveness," he said.
A report on `Cost Competitiveness in textile manufacturing' prepared by Gherzi-Textil organisation, Zurich, was released on the occasion. This report gauges the competitive abilities of India vis-à-vis other countries.
In recognition of the role played by the cotton textiles exporting community in developing and diversifying India's exports of cotton textiles, the Cotton Textiles Export Promotion Council (Texprocil) grants awards for outstanding export performances every year.
The winners this year include Arvind Mills, Mahavir Spinning Mills Ltd, Spentex Industries and Welspun India Ltd for categories such as highest global exports, highest manufacturer exporter - yarns, made-ups and fabrics.