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Textiles: A decisive part of Indian economy
Published on: June 02, 2008 at 10:30
Commodity Online
The Indian Textiles Industry has grown phenomenally and has an overwhelming presence in the economic life of the country. The last four years have proved to be a defining period for the Indian textiles industry. In the face of testing global conditions, the Ministry of Textiles has stayed the course by introducing timely policy changes and innovative programmes aimed at spurring growth and development across the organised and unorganised sectors of the industry.

TEX-Summit 2007
The first ever “TEX-SUMMIT 2007” was organised in association with the Industry to deliberate on problems facing it. The Prime Minister, in his valedictory address to the Summit had announced a Technology Mission on Technical Textiles; Setting up of Investment Regions for the Textiles Sector; the finalization of Scheme of Neighbourhood Apparel and Textiles Training Institutes for Job Assurance (NATIJA) to train 4 million workers and the revitalisation of Handloom Cooperatives on the pattern of agricultural cooperatives and devising a strategy to expand market, diversify and realise greater value for textiles products.

Technical Textiles
The Technical Textiles are products used for their technical performance and functional properties. In pursuance of the announcement made by the Prime Minister, the Government will shortly launch Technology Mission on Technical Textiles to build capacity, upgrade skills, create domestic and export market and standardise product development. Besides, the Government will implement “Development and Growth of Technical Textiles” Scheme during the XIth Five Year Plan at an estimated cost of Rs.44 crore.

Four Centres of Excellence (COE) for technical textiles such as Meditech, Geotech, Agritech and Buildtech, will be set up under the scheme. The Government intends to create a Development Council for Technical Textiles to identify the problems of the industry and suggest measures.

Infrastructure Development
The Government is committed to develop world-class infrastructural and production facilities at handicrafts, handlooms, and decentralised powerlooms clusters with a minimum of 5,000 looms (handlooms and powerlooms) through adoption of a Comprehensive Cluster Development approach. The following mega clusters will be taken up for development during this financial year:

Handlooms in Varanasi (Uttar Pradesh), and Sibsagar (Assam)

Handicrafts in Narsapur (Andhra Pradesh) and Moradabad (Uttar Pradesh)

Powerlooms in Bhiwandi (Maharashtra) and Erode (Tamil Nadu)

Integrated Textile Parks
The Scheme for Integrated Textile Parks (SITP) was launched in July 2005 to strengthen infrastructural facilities in potential growth areas. Till March 31,2008, 30 Integrated Textile Parks had been sanctioned. These Parks will attract an investment of Rs. 16,953 crore and when operationalised, will create employment (direct and indirect) for 5.75 lakh workers, and produce goods worth Rs. 27,386 crore annually.

The Scheme will continue during the XIth Five Year Plan. The Government have earmarked Rs 450 crore for the Scheme during 2008-09. There is a proposal to develop ten additional parks during the XI th Five Year Plan. The Palladam Hi-Tech Weaving Park, Tamil Nadu set-up under the SITP Scheme was inaugurated on April 19, 2008. The Park will provide employment to about 5,000 people. The remaining 29 parks will be completed by 2008-09.

Technology Upgradation
Recognizing technological obsolescence as the main impediment to the growth of the textiles Industry, the Government gave a new impetus to the Technology Upgradation Fund Scheme (TUFS), which ensures the availability of bank finance, at rates comparable to global rates, to modernise the production facilities. All the segments of the textiles industry are getting benefits under the Scheme. The efforts of the Government have brought results; the Scheme had attracted 11,279 applications till March 31, 2007, involving an investment of Rs 93, 447 crore. The Government have provided Rs.1,140 crore for the Scheme during 2008-09. The Scheme will continue till 2012.

Increased Plan Allocation
The textiles sector is seen as the main engine of growth and provider of employment opportunities. In 2007-08, the Plan allocation to textiles was Rs 2,243 crore which was 66.21% higher than that of the previous year – second only to the Department of Secondary Education & Higher Education, Ministry of Human Resource Development. In 2008-09, Plan Allocation has shot up by over 11.45% (Rs 2,500 crore) over a much larger base. This shows the commitment of the Government to develop the sector in a sustainable manner.

Investments
Investment has increased to touch Rs.1,50,600 crore by 2012. This enhanced investment will generate 17.37 million jobs (comprising 12.02 million direct and 5.35 million indirect jobs) by 2012. Investment in the textiles and clothing sector in the past three years was Rs. 70,526 crore.

Cotton
Cotton is one of the principal crops and plays an important role in the textiles economy. It provides sustenance to millions and contributes significantly to the country’s export earnings. In 2007-08, exports are expected to touch 65 lakh bales. Consequently, cotton imports have declined from around 17 lakh bales in 2002-03 to 5 lakh bales in 2006-07. Imports are expected to be around 6.50 lakh bales in 2007-08. Since 2005-06, the country has become a net exporter of cotton.

The Technology Mission on Cotton (TMC) launched on February 21, 2000, comprises four mini missions of which mini missions III and IV have been extended to March 31, 2009 from March 31, 2007. Under mini mission III of the 250 market yard which were to be setup / revived, 127 market yards have been completed at an estimated cost of Rs.255 crore. Under mini mission IV of the 1000 ginning and pressing factory, 679 had been completed.

Jute
Announcement of first ever National Jute Policy in April 2005, decision to revive the National Jute Manufacturing Corporation by running three of its Jute Mills ( Kinnison, Khardah and RBHM Katihar), launch of the Jute Technology Mission in February 2007 at an estimated cost of Rs. 355.00 crore, substantial enhancement of minimum support price of raw jute, vigorous implementation of the Jute Packaging Material, (Compulsory use in Packaging Commodities) Act, 1987 and proposal to set up the National Jute Board to synergeis the activities of various organizations engaged in jute sector are some path- breaking measures taken by Government for revival of the jute industry. The Bill to set up National Jute Board is before the Parliament.  Continued...
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