In the domestic market, import restrictions on textiles are set to disappear virtually and import tariffs are likely to be brought down to 20-40 per cent.
The basic challenge to the textile industry will be its ability to compete in an open market,
both internationally and domestically.
And hence, it is now essential to draw a strategic plan to address to areas like modernisation, technology upgradation, improvement in quality, cost reduction and aggressive marketing.
The pace of modernisation in the textile sector had picked up after the introduction of the Textile Modernisation Fund in pursuance of the textile policy. Today, as much as 50 per cent of our ring-spinning capacity is below 15 years.
The number of open-end rotors in the industry has improved to 2,10,000, from 11,500 in 1985-86.
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Besides, sophisticated equipments like auto-coners, two-for-one twisters, auto-levellers are increasingly being installed in textile units. Devices like splicers and electronic yarn clearers have significantly contributed to quality upgradation.
A commendable progress was achieved, particularly in modernisation of spinning sector. However, weaving and processing sectors have lagged behind. Before this could be adequately tackled, the Textile Modernisation Fund, which provided the much-needed fillip to technology upgradation in the industry, was prematurely withdrawn in total disregard of the fact that modernisation is a continuous process.
According to D Laxminarayanaswamy, chairman of the Indian Cotton Mills' Federation, there is a need to chalk out a time-bound programme for achieving a level-playing field.
We are fast approaching the year 2005, when international trading will be totally free, said he adding in that event, only those who are efficient and competitive will survive.
Therefore, it is necessary to evaluate our strengths and weaknesses and identify areas of action for strengthening our competitiveness. He further said that the textile industry in our country is complex in nature.
Consequently, formulation of a coherent textile policy gets handicapped by different segments of industry advocating their individual interest.
The result: a fragmented approach is taken to satisfy the interest of one segment at cost of the
other.
If the industry is to remain competitive in the global markets, a larger national view needs to be taken and implemented on a sustained basis.
During 1995-96, the total production of spun yarn was 2,378 million kgs, recording a growth rate of about 14 per cent, as against 1 per cent in 1994-95. The production of cotton yarn jumped from 1.586 million kgs in 1994-95 to 1.788 ml kgs, registering an increase of 202 ml kgs, as against a fall of 36 ml kgs in 1994-95.
In addition, the small-scale spinning units produced around 110 ml kgs of cotton yarn during 1995-96.
The total cotton yarn production during 1995-96 was 1.898 ml kgs.
It is pertinent to note that while production of cotton yarn during 1995-96 increased by 202 ml.kgs, exports increased by only 40 ml kgs.
Thus, the availability of cotton yarn for the decentralised sectors of powerlooms, handlooms and hosiery improved substantially.
Similarly, production of 100 per cent non-cotton yarn also improved significantly from 158 ml kgs in 1994-95 to 195 ml kgs in the year. Production of blended yarn rose from 346 ml kgs in 1994-95 to 395 ml kgs during 1995-96.
The production of mill-made cloth in 1995-96 registered a decline of about 235 ml square metres. Its share in the total cloth production declined from around 8.06 per cent in 1994-95 to 6.75 per cent in 1995-96.
According to the provisional figures made available by the Office of the Textile Commissioner, there were 1,569 textile units, comprising 1,295 spinning mills and 274 composite mills ason March 31,1996. During the period of 12 months