Quality certification for textile units soon

The Union textile ministry is planning to ensure 100 per cent implementation of quality certification for small textile units across the country.

While small and unorganised textile manufacturers, which constitute over 90 per cent of the Indian textile industry, are expected to be the worst hit after the dismantling of the quota regime on December 31, the ministry has announced steps for the upliftment of these firms.

The ministry plans quality certification for smaller units, technology upgradation to provide required support services in the preparation of project reports and availing of loans from financial institutions and banks and capacity expansion of decentralised textile units to face competition.

"Indian textile exports, which are at present pegged at around Rs 25,000 crore annually, may witness over a three-fold growth in the post-quota regime. We have taken all measures to secure the leading position in the textile arena in the world. Our thrust will be to encourage and assist the industry, especially the decentralised sectors, to access information, credit and technical know-how necessary for modernisation and growth," said Shankarsinh Vaghela, Union minister of textile.

The end of the quota system will lead to the shake up in sourcing bases of retailers. The entry of more players in the global market would mean further pressure on prices.

It would also lead to further squeeze on the lead times. Operational excellence would be a necessity to meet the buyers' need on price and lead times.

"It is imperative to lift the textile and clothing industry of the country to not merely promote its export edge but also enable it to hold its own in the domestic market. The ministry of textiles has initiated so many policy measures to assist the textile and the clothing industry of the country. The National Textile Policy - 2000 clearly indicates the approach of the government in this regard," said Vaghela.

The ministry has extended the date of closure of the Technology Up-gradation Fund Scheme up to March 31, 2007, on the basis of response of the overall textile industry of the country during the last one year and on the basis of demands of most of the textile associations of the country.

The scheme was introduced by the ministry on April 1, 1999, for five years, with the objective to provide term loan assistance at competitive rates to facilitate technology upgradation and modernisation of the textile industry.

"After 50 years of protection, the market will suddenly become open and quotas will not imply assured business. Market shares will have to be gained by competing internationally. An international survey of international buyers reveals that India will be considered as the second best destination in the textile sector, next to China. But the fragmented and unorganised textile industry needs to be upgraded, and the government is promoting cluster development projects. It has identified various clusters for the small and unorganised textile manufacturers in line with that in Tirupur and Ludhiana to compete with China and face international challenge," said Subodh Kumar, textile commissioner, government of India.