It is part of a three-pronged approach to help the textile industry.
The government is planning a ‘national fibre policy’ for the textile industry by the year-end as a part of its three-pronged approach to assist the sector by removing discriminations among sectors with conflicting interests within the industry.
Union Minister for Textiles Dayanidhi Maran said, “We are working on a three-pronged approach to help the industry. All stakeholders should come together to form a national fibre policy. It will be a neutral policy, which will not only help exporters but also the domestic market.” He was speaking at a seminar here today.
The over $50-billion industry is not keeping pace with the government’s vision for the current Five-Year Plan. The new policy, details of which are yet to be worked out, will be a neutral policy aimed at restoring competitiveness of the industry. From raw materials such as cotton, cotton yarn and man-made fibres to garments, spinning sector, exporters and domestic markets, the policy will benefit all.
The factor which led to the need for such a policy is the presence of several industry lobbies 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 the rest is taken care of by man-made fibres.
R K Dalmia, chairman of the Confederation of Indian Textile Industry, said, “We had recommended to the government for such a policy. It will be a well-defined framework and will help remove discriminations 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.
“It is a continuous process and cannot be achieved overnight. The policy should be in place by the end of this year. Once we achieve these targets, the industry will be on track with a growth rate of 7-8 per cent,” added Maran. He also said that the industry should look beyond the US and the Europe so that it could be insulated from the future slowdowns.
Without divulging details, Maran assured that financial incentives were expected in the Budget as a part of the stimulus package. On the Technology Upgradation Fund Scheme (TUFS), he said a good news was expected. The industry has been demanding for more allocation of funds under TUFS and speedy disbursal of funds.
