India may lose textile share

The central government needs to increase benefits in textile policies or else the European companies will move towards China for trading, claimed a German company which helped three Indian companies in providing ideas in textile industry.

Christoph Potter, CMD of Potter Hemtextilien Gmbh (PHG) in Germany told Business Standard that the textile industry in India lacks several policies and benefits as compared to China and Pakistan.

Potter was in the city to attend the inaugural function of a textile unit along with Shankarsinh Vaghela, union minister of textile.

Potter said, "Since we are dealing with India for last 17 years, we have very good terms. But when it comes to business, European companies will prefer to deal with country that offer attractive policies and schemes. If in the coming budget India comes with more subsidies and benefits, we will surely run to India for trade in textile."

Vaghela urged Potter to invest in India and start a new unit. "We assure that your company will get maximum benefits from our country and the central government will provide all kind of resources including raw material and labour at low cost to the foreign companies," Vaghela claimed.

PHG, a 25 million Euro company, is dealing with Asian companies for home textile. "We import 70 per cent from India, 20 per cent from China and 10 per cent from Pakistan," said Potter adding that the increase in textile import from China may possibly reduce India's share by next year.

About the policies Potter said India has loopholes in infrastructure and the government should do something.

"The biggest hurdle "" 'labour exit policy' is hindering the investment from the European companies," he said. "Power supply in India is the second culprit as it is very expensive as compared to China," he said.