Textiles Export
Merchandise exports, particularly textiles, witnessed only a gradual growth during a major period of 2007-08, the main contributory factor being the appreciation of the Indian rupee by around 15% since October 2006 vis-à-vis the US Dollar. The Government has taken steps by enhancing the Duty Entitlement Pass Book (DEPB) and Duty Drawback Rates, exempting Service tax on 12 services, reducing interest rates on pre-and post shipment credit, and facilitating faster clearance of arrears of terminal excise duties and Central Sales Tax.

In spite of a difficult global scenario, the Government is confident of achieving the exports target set out for the XIth Five Year Plan. In 2007-08, the Textiles exports were US$ 20.5 billion, against the target of US$ 25 billion, registering a growth of 9.4% in dollar terms against exports in 2006-07. The exports grew only by 1.49% between April-October 2007, but the situation improved radically in the later half of the fiscal, registering a total growth of 9.4%.

Village and Small Enterprises Sector
Sericulture and Silk Textiles: The Government introduced Silk Mark Scheme in June 2004 to promote the distinctive quality of Indian silk products. The Silk Mark scheme has given a new thrust to the brand promotion of Silk involving all the stake holders, i.e., from farmers to exporters. Approximately, 36 lakh Silk Mark labeled products have reached the market. Wool And Woollen

Textiles: A new Scheme for Shepherd and Sheep Insurance introduced during the XIth Five Year Plan will cover 93,500 shepherds and 24 lakh sheep by 2012, at an estimated cost of Rs. 22.16 crore by 2012.

Handlooms: During the XIth Five Year Plan, 625 clusters each with 300-500 looms will be taken up for development, at an estimated cost of Rs. 60 lakhs per cluster. The Government is committed to the welfare of weavers who form the lowest rung of the society. The new Health Insurance Scheme (in place of the earlier one) was launched on November 3, 2005. The Scheme covers all pre-existing and new diseases. Mahatma Gandhi Bunker Bima Yojna launched on October 2, 2005, in collaboration with the Life Insurance Corporation of India Ltd. (LIC), covers natural and accidental deaths. To give a distinctive identity to handlooms products, the Handloom Mark was launched on June 28, 2006, and till March 2008, 76.54 lakh Handloom Mark labels had been sold, and 544 handloom showrooms were selling products bearing the Handloom Mark label.

Handicrafts: The Handicrafts sector has emerged as one of the most important foreign exchange earners for India on a sustained basis. The progress in terms of product range, number of companies and value of exports has been tremendous. However, the exports in 2007-08 were Rs.175.37 crore (US$4.36 billion) indicating a declining trend. The appreciation of Indian rupee against US$ had been one of the causes for this.

Human Resources Development
The National Institute of Fashion Technology Act, 2006 empowers NIFT to award degrees to its students from 2007 onwards. The President of India is the visitor of the Institute. The Institute has pioneered the evolution of fashion business education across the country through seven centres at New Delhi, Bengaluru, Chennai, Gandhinagar, Hyderabad, Kolkata, Mumbai, and Rae Bareli.

The Foundation Stone of NIFT centre at Kannur, Kerala was laid by the Minister of Textiles Shri Shankersinh Vaghela, on April 19, 2008. The Government is seriously considering a proposal to confer the status of Centre of Excellence (COE) on the Sardar Vallabhhai Patel Institute of Textiles Management (SVPITM) during the XIth Five Year Plan for which a vision document is under preparation.

National Textiles Corporation
The Modified Revival Scheme (MRS) for the National Textiles Corporation (NTC), at an estimated cost of Rs. 5,267 crore, was approved by the Government on December 5, 2006. This scheme will be financed through interest free loans of Rs. 528 crore from the Government, and Rs. 4,739 crore will accrue from the sale of land and other assets.

Progress
The first major sale of 5 mills land in Mumbai by the Corporation between the months of January to July, 2005 at a consideration of Rs. 2,200 crore.

The above funds were the main source for initiating the Revival Scheme.

Modernisation of 22 mills at a cost of Rs. 530 crore.

15 mills will be modernised by May 2008.

Mobilized Rs. 4,033 crore by sale of assets of the closed mills and surplus assets of the viable mills.

Closed down 67 unviable mills and 2 mills had been handed over to Government of Puducherry. Paid Rs. 2,100 crore towards MVRS compensation to its employees in the closed mills.

NTC proposes to develop an Indian Textiles Plaza in Ahmedabad, and an International Trade Tower at Mumbai.

Looking Ahead
Today, the industry is increasingly embracing modern technology and work processes, becoming more globally competitive, building strong brand equity for its products, and consistently achieving higher growth rates than ever in its long history. The challenges are many. The Government is committed to transform what is today an emerging or sunrise sector, into a developed industry.

Inputs from the Ministry of Textiles

Courtesy: www.pib.nic.in

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