The government is mulling a national fibre policy for the textile industry by the end of this year as a part of its three-pronged approach to assist the sector by removing discriminations among the sectors with conflicting interests within the industry.
The over $50 billion industry is not keeping pace with the government's vision for the current five year plan.
The new policy, of which details are yet to be worked out, will be a neutral policy aimed for restoring competitiveness in the industry. Whether it is raw material like cotton, cotton yarn, man made fibres, garments, spinning sector, exporters or domestic markets; the policy will bring advantages to all.
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The Union minister of textiles, Dayanidhi Maran, said, "We are working on a three-pronged approach to help the industry. All stakeholders should join together to form a national fibre policy. It will be a neutral policy which will not only help the exporters but also the domestic market." He was speaking in a textiles seminar in the city today.
The factors which lead to the need for such a policy are the presence of several industry lobbies existing in the textile sector with their conflicting interests. In the domestic market, over 60 per cent of the size is covered by cotton textiles whereas rest is taken care of by the man-made fibres.
R K Dalmia, chairman of the Confederation of Indian Textile Industry, said, "We had recommended the government for such a policy. It will be well-defined frame work and will help remove the dicriminations and abnormalities in the sector. At present various industry lobbies look after their respective interests which is a hurdle in making the industry competitive."
The ministry has also made it clear that it wants to make an India brand and at the same time promote the domestic market, as a part of the three-pronged strategy.
"It is a continuous process and cannot be achieved overnight. Policy should be in place by the end of this year. Once we achieve these targets, industry will be on track with a growth rate of 7-8 per cent," added Maran.
He also said that indusry should look beyond the US and the Europe so that the industry gets insulated from slowdown the industry is witnessing presently.
Without divulging details, Maran assured said that financial incentives in the budget is expected as a part of the stimulus package.
On the Technology Upgradation Fund Scheme (TUFs), he said good news was expected. Industry has been demanding for more allocation of funds under TUFs and speedy disbursal of funds.
