New Delhi, Jan. 26
THE Indian textile sector has the potential to touch $100 billion by 2010 in the post-MFA (Multi-Fibre Agreement) period.
This could happen if reforms are initiated in the textile sector and adopted by manufacturers, says the study conducted by the Associated Chambers of Commerce and Industry of India (Assocham).
The chamber adds that this breakthrough will be accomplished in case pace of suggested reforms are accelerated to the extent that local manufacturers adopt fresh reformatory measures to improve their competitiveness, points out the chamber's study on post-MFA scenario on textile and apparel exports.
Releasing the study, the Assocham President, Mr Mahendra K. Sanghi, said that with reforms, the Indian textile and apparel sector will also be poised to create 10 million jobs opportunities, of which 5 million could be direct jobs and as many number of jobs can be created in textile-related allied sectors. Mr Sanghi warned that in case we miss the reforms, China and Pakistan would capture India's global textile market share of 4 per cent and its 3 per cent share of apparel. Therefore, India needs to introduce massive reforms and modernisation drive for its textile sector. The chamber has suggested a 5-pronged strategy to the Government to improve the competitiveness of domestic textile sector.
The strategy includes reform of local markets in order to attract foreign direct investment, implementation of VAT, flexibility in labour laws, and amendments to help free outsourcing to promote investment in labour-intensive and export-oriented garment sector.