Karnataka's garment exports can be Rs 8,000 cr

Garment exports from Karnataka is targeted to more than double to Rs 8,000 crore in the next five years.

To facilitate that, the Karnataka government said, it will provide all support systems and assistance to prop up the requisite infrastructure.

Sandeep Dave, commissioner for textiles, government of Karnataka, adressing a Textiles Committee-Canara Bank workshop on Export Marketing for Indian Textile and Clothing, said that the removal of quotas will widen opportunities for garment firms.

To tap that the state government, he outlined, is promoting the apparel park in Doddaballapur near Bangalore, a powerloom park again near Bangalore and a jean (denim) park in Bellary.

However, he warned that the primary obstacle in this growth path will be the non-tariff barriers and safeguards like anti dumping that will be unleashed by European Union and the USA.

He added, exporters should factor in these safe guards and other counter measures like tariff escalation for value additions before finalising the pricing, production plan and quantities.

He said, the Indian representatives at the WTO will protect Indian firms against such safe guards in addition to the tariff negotiations.

For instance, he said, average tariff for normal products in the USA was about 3.5 per cent, whereas 52 per cent of the textile items attracted 15 to 35 per cent. "We will argue for slashing the tariffs to acceptable levels, besides opposing the moves of 47 countries to extend quotas," he said.

For now though, the state is trying to reignite its non-starter textile infrastructure projects. The 187 acre apparel park conceived a couple of years back is still in the drawing boards. Sandeep Dave, however said, interest in the project is picking up.

"Raymond has already taken up 20 acres. Other prospects are Gokuldas, Mudra and atleast two overseas apparel firms." He added one of the overseas firm was a linen maker.

"Further a Rs 20 crore project that will draw water from Yelahanka has been planned to beat out the water concerns," he said. "The jean park in Bellary is in the nascent stage. It will come up over 50 acres."

Another area, that the government is trying to address is the social concerns of importers and the rigid labour laws. He said that parleys are on with the labour commissioner to bring flexible employment.

Also, with a majority of the textile firms falling under the SSI sector, regulations will be simplified. He said that a SSI cannot maintain 116 registers and cope with 52 acts.

As a result the government will include self certification norms to ease standards without compromising on labour welfare, he said.