'The Chinese model can't work for textiles'

Q&A/ Arvind K Singh

Growth in the textile sector, both production and exports, has declined in the last six months. When do you expect a revival?

We are trying. Rupee appreciation has hit a part of exports, not all segments. We are taking corrective measures, one of the reasons why we are organising the Textile Summit this year.

We are involving not only the industry or the ministry but also the intelligentsia, economists and others. Prime Minister Manmohan Singh is coming for the closing function and all four working groups will present their recommendations before him. Once we have the recommendations, better policies will be framed.

What is being done on the labour reforms front?

We are in talks with the labour ministry, the labour unions and (company) managements. Protecting the interests of labourers is paramount. There are certain areas where work is seasonal.

In the case of garments, one of the suggestion is that during the peak season, employees should be allowed to work for longer hours and paid extra. We are in touch with the labour ministry. Let us see what happens.

What about flexibility in managing the workforce?

These things are there but such decisions cannot be taken in a day and by one individual. The decision has to be taken in consultation with various stakeholders, keeping in mind everyone's interests.

What is the government doing to cope with the consolidation in the fabrics segment?

Regulations during the last 40 years reserved fabric production for small scale units. Not more than 3 per cent of the fabric is produced by the organised mills, while 62 per cent comes from the powerloom segment.

That is why powerlooms take a very high priority in our strategies and policies. We have come out with schemes for technological upgrade of the powerloom sector.

Other measures like developing and supporting powerloom worksheds, providing backward and forward linkages in terms of yarn supply and an integrated strategy for marketing powerloom products are under consideration.

The government has decided to continue the Technology Upgradation Funds Scheme (TUFS) during the 11th Plan. What are the features of the new TUFS scheme?

The government's agenda is employment generation. Investment in the garment segment is low but employment generation is high.

Another area is technical textiles, where we have not harnessed the potential. We consume less than 5 per cent of fibre in technical textiles. There are some problems "" machinery is costly, entrepreneurial attention is absent and standards have not been fixed. Another area is processing.

In the last decade, we have found that processing is the weak link in the chain and grey fabric and grey yarn is still being exported in a big way. Not more than 10-12 per cent of the processing plants in the country are highly mechanised.

Is the Chinese model of mass production relevant for us?

The Chinese model may be useful for mass production but if you want to replicate that in textiles, where you have complicated designs, it may not work.

When the value addition is more and the order size is small, may be our disorganised sector becomes our strength as we can change production lines faster. That cannot be done in the Chinese model.