CII unveils vision document for textile sector

The Confederation of Indian Industry (CII) Andhra Pradesh launched a Vision Document for the textile sector in Andhra Pradesh "� 'Andhra Pradesh Textile Industry "� Vision 2015' today.

Among other things, the vision document also provides an analysis of the strengths of state to become a future textile destination.

The CII document deals with emerging opportunities in the next decade in various segments, the investments required across the value chain and makes recommendations to the industry, trade associations and government.

According to the report, exports will explode owing to dismantling of quotas, inherent Indian strengths as a low cost and quality cotton producer, Chinese constraints, and also favourable initiatives by the Centre and the state government.

The report says the high labour-intensive nature of textiles will help in creating 1.35 million jobs in the state by 2015 of which 719,000 jobs will be created in spinning, weaving and garmenting. The handloom sector will create 615,000 additional jobs.

In textiles and apparel, it is spinning and garmenting that will generate the maximum number of jobs with garmenting alone employing about 490,000 people.

According to the report, Andhra Pradesh industry needs to invest Rs 14,400 crore till 2010 and an additional Rs 21,700 crore till 2015. The major investment will go in spinning and processing which need Rs 13,700 crore and Rs 12,900 crore respectively.

Weaving is another crucial area, which needs an investment of Rs 5,730 crore. Other activities like ginning (Rs 485 crore), knitting (Rs 1,500 crore ) and garmenting (Rs 1,790 crore) need the indicated investment to ensure the optimal performance of the textile value chain in the state.

A look at the textile value chain reveals that though spindle installation and yarn making are showing some progress, the real challenge is to go up the value chain, according to the document.

The document also emphasises the need for a flexible labour policy. Special focus has been given to the export-oriented industry, which faces the twin challenge of fluctuating demand and strict quality norms followed by the client, which include labour welfare and working conditions.

Further, the variable Dearness Allowance policy of Andhra Pradesh makes the labour cost unfavourable in comparison to neighbouring states such as Tamil Nadu and Karnataka, it says.

To give a fillip to garmenting, the government needs to establish garmenting units in and around Hyderabad, Visakhapatnam, Vijayawada and Guntur, the report adds.