FICCI welcomes the increase in basic custom duty on several textile items. The move is very much in the direction to encourage domestic manufacturing. Increase in import duty on over 300 textile items to 20% will give a further relief to domestic textile and carpet manufacturers, said Mr. Shishir Jaipuria, Chairman, FICCI Textile Committee. Mr. Jaipuria added, The measures taken by the Government in last few months for the textiles sector have been very encouraging and given confidence to the domestic textile industry that has been reeling under the pressure of growing competition and rising cost. This has also given us the hope that the Government will address the issue of rising garment imports from Bangladesh, which remains an area of concern for the industry, due to full exemption of basic custom duty from Bangladesh, noted Mr. Jaipuria. Mr. Jaipuria stated that the garment & carpet industry was under immense pressure after implementation of GST. After GST, substantial drop in import duty was observed which has encouraged cheaper imports.

Welcoming the recent multi-faceted measures taken by the government to address the problems of the textile industry, Shishir Jaipuria, Chairman, FICCI Textile Committee has said that increase in import duty on 76 textile items from 10% to 20% and GST reduction on carpets and handicraft items have given a big relief to domestic textile, carpet and handicraft manufacturers. Jaipuria added, “It is heartening to see the multifaceted steps taken by the Government in last few days for addressing problems of various segments of textiles and handicraft industry. We thank Prime Minister Narendra Modi, Finance Minister Piyush Goel and Textiles Minister Smriti Irani for the much-needed timely support for the industry.” He stated that garment and carpet industry was under immense pressure after implementation of GST. After GST, substantial drop in import duty was observed which has encouraged cheaper imports. It is also worth noting that total imports of textiles and garments increased in 2017-18 (USD 7 billion) by 16% in comparison to 2016-17 (USD 6 billion). Total import of garment alone increased by 30% in 2017-18 in comparison to 2016-17. Jaipuria further said that imports from Bangladesh is an area of concern for the industry. Due to full exemption of basic custom duty from Bangladesh and also due to lack of regional cumulation clause under the treaty, third countries’ raw material and fabrics are getting benefitted indirectly. Imports from Bangladesh has increased by 44% in 2017-18 in comparison to 2016-17. It is suggested that Government may consider imposition of regional cumulation clause in Rules of Origin on the countries that have FTAs with India to safeguard garment industry further as cheaper fabric of third countries enter India through these countries. Jaipuria also felt the need to increase the import duty on MMF spun yarn as import of MMF yarn-based fabric also increased sharply after GST implementation. FICCI is hopeful that Government will take further steps to address unresolved issue

The 6th edition of the four-day international textile and apparel fair, 'Vastra', has been organised in Jaipur from September 21 to 24, 2017 at Jaipur Exhibition and convention Centre (JECC), Sitapura. The expo is an all-encompassing trade fair and conference on textiles and apparel, which will present a fusion of the finest and the latest in textile products - from fiber to fashion, services and technology. The mega textile fair is jointly organised by RIICO and FICCI.

FICCI has sought urgent intervention of the Ministry of Textiles in adequate release of procured cotton by Cotton Corporation of India (CCI). FICCI insists that this is required to ensure that cotton is available to the mills and industry at a competitive rate and at the earliest. "The role of CCI is primarily to ensure MSP (Minimum Support Price) operation for the farmers so that they get a remunerative price for their products. "However, at the same time if the procured cotton is not released in time for the industry and is retained as a stock by CCI, it distorts the market and leads to artificial increase in prices thereby making the user segment uncompetitive," noted Dr. A Didar Singh, Secretary General, FICCI in the letter to Textiles Minister Santosh Gangwar.

Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO), with FICCI as co-organiser, is organising the third edition of international trade fair on Textiles and Apparel - VASTRA - An International Textile & Apparel Fair 2014' (VASTRA-2014) - from October 29 to 31, 2014, at Jaipur Exhibition & Convention Centre, Sitapura Industrial Area, Jaipur. The Ministry of Textiles is extending cooperation to VASTRA-2014.

The country's technical textilesBSE 2.06 % sector, which is currently pegged at USD 13 billion, is expected to grow at 20 per cent per annum in the next two years.

"We see a huge potential of the technical textiles sector, which is currently USD 13 billion in size and expected to grow at 20 per cent per annum in the next two years. With imports touching USD 5 billion, India needs to develop indigenous products to boost domestic growth," Shishir Jaipuria, Chairman, FICCI Committee on Textiles and Technical Textiles, said at Technotex 2014 here.

Highlighting on the theme for this year which is 'accelerating technical textile usage and strengthening institutional buying', Jaipuria said that technical textiles has a major role to play in the growth of the overall textiles sector in India.

Calling it the next sunrise sector for India, Zohra Chatterjee, Secretary, Ministry of Textiles, gave a detailed insight into the vision of the government for the technical textiles sector. The government is looking at a five-fold increase in the fund outlay for the sector during the 12th Five Year Plan. A major initiative will also be to drive up the growth of the sector in the north-eastern states.

A pilot scheme budgeted at Rs 500 crore has also been proposed for geo textiles. There are also plans to hike the FDI for this sector. The government has already launched an integrated skill development scheme to train 15 million people in this field by 2020, Chatterjee said.

Sujit Gulati, Joint Secretary, Ministry of Textiles, Government of India, said that this year Technotex aims to build and enhance the 'investment' environment for the technical textiles sector in the country. He threw light on the initiatives of the government focused around promotion of technical textiles in India.

Gulati highlighted a few schemes, starting with the four centres of excellence that were doubled to eight in the Technology Mission programme of 2010, along with encouraging entrepreneurs and start-ups to take part in this sector.

The government aims at strengthening research in this field, organising buyer seller meets, providing a national policy framework and also promoting the agro technical textiles in the north eastern states where two demonstration centres are already underway, to showcase the benefits and usage of technical textiles, especially natural fibres.

To generate skilled manpower, the subject has also been made part of the curriculum in schools and colleges through the intervention of the Indian Textiles Association (ITA).

Technotex aims to provide the further roadmap for the industry to explore the repository of technical textiles in India, Gulati said.

After almost two years of policy wrangling and economic challenges, major textile units in the country are investing in production capacity enhancement and exploring new avenues for exports during the New Year 2014.

Sanjay S Lalbhai, chairman and MD of Arvind told Financial Chronicle the company is investing Rs 200 crore to set up three garments units of around 15 million capacities across Karnataka and Gujarat. “We will be setting up two factories in Karnataka and one in Gujarat,” added Lalbhai. The company is also eyeing new exports markets beyond US and Europe. “The industry would now be looking at markets such as South Africa, Canada, Japan, Russia,” said Lalbhai.

Over the last one year, Indian textile industry suffered on the back of rupee depreciation, increase in raw material cost, weak demand. The industry could only pass on a part of the increasing cost, which has resulted in squeezed margins. Rahul Mehta, MD of Creative Casualwear, said, “We have to now focus on expansion and modernisation of our apparel plants. The time is now ripe to focus on India due to reducing interest of China and rupee-dollar parity.”

Labour laws need to be reformed to boost textile and clothing industry and raise India’s share in world exports, according to FICCI. According to the 12th plan working group on textiles and apparel, the textiles sector will create an additional employment of 15 million by 2016-17. FICCI projects that textile industry could provide employment to at least an additional 20 million people from the current 45 million to 65 million by 2023. Sunil Khandelwal, CFO of Alok Industries, said, “The current prospects warrant higher capacity expansion. There is also good opportunity for exports in similar markets such as Japan, Russia.”

India earned nearly $15 billion through exports of textiles and apparel in the first six months of the current financial year 2013-14, according to the latest data released by the RBI. According to the data, India exported $14.935 billion worthof textiles and garments during the first half of the current fiscal year, with the readymade garments accounting for $7.074 billion of the same.

Industry body FICCI has advocated reform of the labour laws to boost the textile & clothing industry and raise India's share in world exports. This and a few other suggestions have been submitted by FICCI to Mr Ajay Shankar, Member Secretary, National Manufacturing Competitiveness Council and chairman of Expert Group on National Textiles Policy.

Assuming India's GDP grows by 7 per cent on an average over the policy period as per the scaled down estimates of the Planning Commission and assuming that the domestic textiles industry also grows by 7 per cent, it would mean that the textiles industry would be a $278 billion industry, of which exports would account for $145 billion, the business chamber noted.

To meet this target, Indian exports require to grow at a compound annual growth rate (CAGR) of 15.1 per cent over the 10-year period (assuming world exports in textiles and clothing grow by 5 per cent). Indian exports would reach $145 billion by the end of the policy period if they grow by 15 per cent.

On GST, Mr Shishir Jaipuria, chairman, FICCI Textiles Committee, said the industry should be kept in the priority/lowest slab of GST as it provides a basic necessity to the masses with large-scale employment potential. Currently, parts of the industry are VAT exempt and a large part of the industry is kept out of excise duty. Any sudden increase in rates would destabilise the complete industry as has been in the past. Excise duty has been levied twice and then removed, after observing a negative impact on the industry, noted Mr Jaipuria.

As per the 12th Plan working group on textiles and apparel, the textiles sector will create an additional employment of 15 million by 2016-17, which means the sector can provide 30 million additional jobs by 2023.

Industry body FICCI has suggested measures like labour reforms and keeping textile industry under the lowest slab of GST to boost the country’s textile & clothing industry and raise India’s share in world exports.

These recommendations have been submitted to National Manufacturing Competitiveness Council Member Secretary Ajay Shankar, who is also the Chairman of Expert Group on National Textiles Policy constituted by Government of India.

The measures suggested include providing “dormitories” for ensuring supply of skilled and unskilled labour to the textile factories through a provision in the National Textiles Policy, revisiting excise duty structure on fiber and yarns and bringing down duties on man—made fibers at par with cotton to bring neutrality in the sector.

“The textile industry should be kept in the lowest slab of Goods and Services Tax (GST) as it provides a basic necessity to the masses with large scale employment potential,” Chairman of FICCI Textiles Committee Shishir Jaipuria said.

Other measures included setting up of pollution free zones for textile processing to help in increasing textiles exports from India.

A separate scheme in this regard needs to be introduced, which provides additional support of Rs 5 crore for each Park for setting up Common Effluent Treatment Plant (CETP), FICCI said.

“Assuming India’s GDP grows by 7 per cent on an average over the 12th five—year plan period (2012—17) as per the estimates of Planning Commission and if the domestic textiles industry also grows by 7 per cent, it would mean that the textiles industry would be a USD 278 billion industry, of which exports would account for USD 145 billion,” FICCI said.

As per the 12th Plan working group on textiles and apparel, the textiles sector will create an additional employment of 15 million by 2016—17, which means the sector can provide 30 million additional jobs by 2023, FICCI said.

Given that textiles & clothing sector is a labour intensive sector, it can provide employment to at least an additional 20 million people from the current 45 million to 65 million by 2023, the industry chamber observed.

Globally, the total textile and apparel trade has grown at a CAGR of 6.7 per cent in the last 11 years, being valued at USD 706 billion with major markets being USA, Germany, Japan, China and UK. India has a share of 4 per cent in global exports of textile and apparel, FICCI said.

The Government plans to make the use of fire-resistant textiles mandatory in public places to minimise damages caused by fire, and ensure greater safety.

A draft order circulated by the Textiles Ministry mandating manufacturers and distributors to stick to specified standards has, however, met with some opposition from the industry, which says users should share responsibility, too. Fire-resistant standards have been prescribed for textiles used for curtains and drapes and upholstered composites used for non-domestic furniture. Specifications have also been proposed for protective clothing for industrial workers exposed to heat.

"No person shall himself or by any person on his behalf, manufacture or store for sale, sell or distribute textile material which does not conform to the specified standard," the draft order says.

The textile material, which does not conform to the specified standard, shall be destroyed within a month, it adds.

While welcoming the proposal the Federation Of India Chamber of Commerce and Industry (FICCI), an industry body, said its implementation in the present form would be difficult. “Most manufacturers would be supplying textiles both for domestic and public places. In such a scenario, prohibiting manufacture, sale or distribution of non-fire retardant material and permitting only fire retardant textile materials would not be rational,” pointed out Shishir Jaipuria, Chairman, FICCI Textiles Committee. Segregating domestic from the non-domestic supply would not be feasible, he added.

Stressing on an enforcement mechanism at the user-end, FICCI has proposed to the Government that there should be legislation for mandating the use of fire-retardant textiles by various authorities in public places.

According to D.K. Nair, Secretary General, Confederation of Indian Textiles Industry, while standards can be stipulated only on manufacturers, what has to be mandated for consumers and users is the use of fire-retardant textiles in specified applications.

Nair added the industry should be given enough time to adapt to the new specifications.

Textiles and accessories fair 'VASTRA -2013' has generated business worth over Rs 425 crore this year, compared to Rs 375 crore in the last edition.

The business generated in Vastra this year was about $ 69.3 million, compared to $ 61 million last time, Riico MD Naveen Mahajan said.

The four-day long exhibition, which ended today, had been being jointly organised by Rajasthan State Industrial Development and Investment Corporation (Riico) and Federation of Indian Chambers of Commerce and Industry (FICCI).

200 Exhibitors

This year, over 200 exhibitors showcased a wide variety of products -- apparels, made-ups, home textiles, fashion accessories, carpets, rugs and bags, according to organisers.

They said the fair served as a platform to participants for forming new business relations, exports, partnerships worldwide and locations for setting up businesses in India, projecting it as a prominent sourcing hub and investment destination.

The Ministry of Commerce & Industry has provided financial support of Rs 5 crore for the fair, under the Market Access Initiative Scheme, Rajasthan Industries Minister Rajendra Pareek said.

The state government recently announced a separate policy for the sector.

Textiles is among the prominent sectors in Rajasthan, employing 1.61 lakh people in mills and decentralised power loom sector.

Textiles exports from Rajasthan are expected to grow 9 per cent year-on-year to Rs. 2400 crore in the 2013-14 fiscal on account of rising demand from emerging markets like Latin America and Africa.

In 2012-13, the exports from state stood at Rs. 2,200 crore, an official said. The second day of the second edition of the International Trade Fair on Textiles and Apparel, titled “Vastra-2013” saw massive business dealings.

“We are focusing on introducing the international buyers to some of the unique aspects of Indian fabrics,” said Naveen Mahajan, managing director, RIICO. Buyers from Latin America and Africa were seen participating largely at the international textile fair. “This is despite the slowdown in the traditional textile markets like the US and Europe,” added Mahajan.

There was also a plethora of buyers from South African countries like Zimbabwe, Tunisia, Algeria, Botswana and Uganda, who purchased and placed orders for a variety of garments and home furnishings.

The organisers of VASTRA 2013, RIICO and FICCI said the idea was to include more and more countries and pursue them to explore the various Indian textiles from across the country.

Mahajan said several efforts were made to keep up with the policy of the Union government to explore new markets under the Focus Market Scheme. “We were involved in pursuing export promotion events in non-traditional markets such as Japan, Malaysia, Australia, Uruguay, Brazil, Mexico, Russia, South Africa, Egypt and Israel and have hence invited them to Vastra. We are glad that the buyers from these countries have shown vast interest in Indian textiles. Finally our efforts, along with the new policy, have paid off,” said Mahajan

Rajasthan’s textiles industry is expecting fresh investment of Rs 10,000 crore over the next seven years due to the state’s new textile policy announced recently, said Industries Minister Rajendra Pareek on Thursday. “A few years back, textiles industry in Rajasthan was languishing and that is when, under the guidance and vision of our chief minister (Ashok Gehlot), the state machinery went into ‘mission mode’,” Pareek said at the inauguration of the ‘Vastra–2013’ international textile and apparel fair. “Today, because of innovative schemes, textiles–friendly policies and infusion of new technologies, the industry has been resurrected and is headed for an upsurge.” The textile fair is jointly organised by the Rajasthan State Industrial Development and Investment Corporation (RIICO) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

The state government has adopted a new textile policy under the special customised package, 2013, which was cleared by the state cabinet in July for skill development, manufacture and export promotion in the textile sector. With the roll–out of the special package, an investment of Rs 10,000 crore over the next seven years is expected in the state along with employment opportunities for about 50,000 people. RIICO chairman Sunil Arora said that the decision to organise ‘Vastra’ fair was a leap of faith which had paid off.

Textiles and accessories fair ‘VASTRA-2013’ that opened here today is expected to generate business worth Rs 700 crore this year, up 75 per cent compared to the last edition, Rajasthan Industries Minister Rajendra Pareek said.

“We expect to generate higher business worth Rs 700 crore in this year’s fair as there is an increase in the number of exhibitors as well as foreign buyers,” Pareek said after inaugurating the fair.

The four-day exhibition is being jointly organised by Rajasthan State Industrial Development and Investment Corporation (RIICO), with the Federation of Indian Chambers of Commerce and Industry.

The event, wherein over 200 exhibitors showcasing a wide variety of products like apparel, made-ups, home textiles, fashion accessories, carpets, rugs and bags, aims to provide a platform to participants for forming new business relations, exports, partnerships worldwide and locations for setting up businesses in India.

The fair would contribute further in projecting India as a prominent sourcing hub and investment destination. The Ministry of Commerce & Industry has provided financial support to the tune of Rs 5 crore for the fair, under the Market Access Initiative Scheme, Pareek said.

“This year 202 exhibitors, 421 buyers from 66 countries and 43 Indian buying houses have confirmed their participation,” RIICO MD Naveen Mahajan said.

“Besides participation from traditional export markets like the US and West Europe, this year there is also an increase in participation from new markets such as Latin America, Africa, China, Australia and East Europe.

“The event is in line with the efforts of the government in enlarging the export market of Indian textiles and making inroads into new ones,” Mahajan added.

During the interaction, State Head of FICCI, Gyan Prakash said: “The exhibition is a comprehensive trade fair on textiles and apparel. The objective is to showcase the best and latest in textiles from — fibre to fashion, be it products and accessories or technology and machines.”

The exhibition has a special significance for Rajasthan as the state government has recently announced a separate policy for the sector titled the ‘Special Customised Package for Textile Sector Enterprises-2013’

Textiles are among the prominent sectors in Rajasthan, employing 1.61 lakh people in mill and decentralised powerloom sector.

Rajasthan has apparel and textiles-friendly policies and provides impetus to the entire textile value chain — from spinning to garments and made-ups.

The textile industry may soon have a single-window clearance facility for setting up new projects.

The Ministry of Textiles is working on a scheme to set up a new division, headed by the joint secretary, to help investors get clearances for setting up new projects through a single-window.

“The proposed division will coordinate with other ministries to help promoters get different clearances. Currently, new projects require some 50 different approvals from different ministries and departments, which is often time taking,” Union Textile Minister K. Sambasiva Rao told media persons on the sidelines of a FICCI seminar on the textile industry.

He said the Ministry was likely to finalise the new textile policy draft within a couple of months.

“I have called for a meeting with senior officials on October 3 and we hope to finalise the draft within two months,” he said, adding that the policy would seek to bring about stability in the various schemes being implemented for the industry.

Calling for more R&D activities, Rao said the Ministry was willing to provide 50 per cent financial assistances to textile associations and industry bodies for setting up new research units. He particularly wanted industry bodies to set up an R&D unit for increasing cotton yield. Similar financial assistance will be given for setting up training units, as the industry required skilled workers.

He wanted the industry to make use of the recent extension of the Technology Upgradation Fund scheme for the 12th Plan period with a Budgetary allocation of Rs 11,950.

Industry representatives dwelt at length on the prospects and challenges before the textile industry at the seminar, with special focus on technical textiles such as safety clothing for the defence, oil and gas and power sectors. The potential size of the textile and apparel industry is expected to touch $ 221 billion by 2021.

It was pointed out that the industry attracted FDI worth $1.22 billion in the last 12 years, accounting for 0.65 per cent of the total FDI inflows.

Rajasthan's rich and colourful traditional textiles, which have blended well with latest technology, would be on display here at a fair at which buyers from 66 countries are expected.

'VASTRA - 2013', the second edition of Rajasthan's international textile and apparel fair, promises to be bigger and better than its first edition last year with overseas participation from over 66 countries having been confirmed.

The fair, being held Oct 3-6 at the Jaipur Exhibition & Convention Centre in Sitapura Industrial Area, is being organised by the Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO), with Federation of Indian Chambers of Commerce and Industry (FICCI) as the co-organiser.

The union commerce an industry ministry has provided financial support to the tune of Rs.5 crore for 'VASTRA-201'' under the Market Access Initiative Scheme.

Addressing a press conference, RIICO MD Naveen Mahajan said: "This year, 202 exhibitors, 421 buyers from 66 countries and 43 Indian buying houses have confirmed their participation."

"Besides participation from traditional export markets like the US and West Europe, this year there is also an increase in participation from new markets such as Latin America, Africa, China, Australia and East Europe. This is in keeping with the efforts of the government of India in enlarging the export market of Indian textiles and making inroads into new markets."

The apparel export target for the current financial year has been fixed at $17 billion.

Business worth $61.90 million was generated during 'VASTRA - 2012', in which as many as 178 exhibitors, 361 foreign buyers from 61 countries and 36 buying houses from India participated.

FICCI state head Gyan Prakash said that "VASTRA - 2013" is a comprehensive trade fair on textiles and apparel.

The objective is to showcase the best and latest in textiles from - fibre to fashion, be it products and accessories or technology and machines. The event aims to provide a platform to participants/exhibitors for forming new business relations, exports, partnerships worldwide, locations for setting up businesses in India.

The fair would contribute further in projecting India as a prominent sourcing hub and investment destination.

Products that would be on display during the four day event include apparel, home textiles, fibre, yarn, fabric, fashion accessories, machinery, carpets, rugs and bags.

'VASTRA' has a special significance for Rajasthan as the state government has recently announced a separate policy for the sector.

Textiles is among the prominent sectors in Rajasthan, employing 1.61 lakh in mill and decentralized power loom sector. The industry has blended its rich and colourful age old traditional textiles with the latest in technology, which would all be on display at 'VASTRA - 2013'.

Rajasthan enjoys leading position in the production of polyester viscose yarn and synthetic suiting material as well as processing of low-cost, low-weight fabric. Almost half of India's PV suiting and yarn is contributed by Rajasthan. It is present across the entire textile value chain -- from spinning to garments and made-ups. Bhilwara is the biggest centre for production of viscose and polyester textiles in India.

Rajasthan is a major producer of printed and dyed fabric for the fashion garment industry and Rajasthani prints of Bagru and Sanganer have got international recognition.

The textile and apparel business-to-business (B2B) exhibition that traverses from fibre to fashion will kick off from October 3 on a bigger scale, scope and focused content compared to the maiden edition held last year.

The four-day event organized by RIICO and FICCI, Vastra, is designed to give a fillip to the textile and apparel sectors by creating opportunities for accessing new markets, facilitating new business alliances and attracting investments. Naveen Mahajan, managing director, RIICO said, "This year, 202 exhibitors, 421 buyers from 66 countries and 43 Indian buying houses have confirmed their participation. Besides participation from traditional export markets like the US and West Europe, this year there is also an increase in participation from new markets such as Latin America, Africa, China, Australia and East Europe."

Last year, the event, which had 178 exhibitors, was visited by 361 international buyers and 36 large Indian companies in the sector.

Rajasthan is a major producer of polyester viscose yarn and synthetic suiting material as well as processing of low-cost, low-weight fabric. Almost half of India's PV suiting and yarn is contributed by Rajasthan. It is present across the entire textile value chain - from spinning to garments and made-ups.

To attract investments in the sector, the state government has recently announced a textile policy providing cheaper loans and VAT exemptions and other incentives.

Rajesh Yadav, commissioner industries, said that the new policy will enable the state to attract investments worth Rs 10,000 crore in 5-7-year period. However, he said there is a challenge in meeting the demand for skilled- and semi-skilled manpower.

"The industry faces shortage of 17-24% skilled manpower depending on the economic conditions. The state through Apparel Training and Design Centre is trying to meet some of the gap in demand," said Yadav.

The event, which will be held at Sitapura industrial area, has been provided a financial support of Rs 5 crore by the Centre under the market access initiative scheme. Last year, the assistance was Rs 3.5 crore.

The second edition of the International Trade Fair on textile and apparel 'Vastra' will take place in Jaipur from October 3 to 6 organized by RIICO and FICCI with support of the ministry of textiles.

In a bid to boost the exports business for garments, the Government of India had acknowledged some key concerns of Indian garment exports industry at the inter-ministerial workshop, held in New Delhi under the Chairmanship of Cabinet Secretary Ajit Kumar Seth.

The Government assured to address the issues related to skill development and availability of credit for the organizations in the apparel industry.

The core issues that are causing great resistance to the industry’s growth and are seeking government agencies’ assistance are high interest rate for credit, expensive raw materials, lack of skilled workforce, tough labour laws and high customs duty on synthetic fabric.

However, there are several schemes and incentive programs already in progress which are primarily aimed at motivating entrepreneurs to expand their export business. In another industry forum organized by FICCI, Madhav Lal, Secretary, Ministry of MSME, Government of India said, "The biggest concern ahead of the Government is the lack of awareness among the entrepreneurs regarding schemes and policies for MSMEs. Poor awareness level leads to non-implementation of these schemes. There is a strong need to ensure that the right level of awareness is created among entrepreneurs.”

The Indian Apparel industry has a strong footprint in the overall landscape of Indian MSMEs. Exports are the main driver for this segment. The Government is implementing various schemes and policies to boost employment generation through development of manufacturing/service oriented enterprises, including those exclusively meant for women empowerment. Garment export industries are eligible for several other schemes including this.

Some of the schemes operated by the MSME Ministry are National Competitiveness Programme, Micro & Small Enterprises Cluster Development Programme, Credit Linked Capital Subsidy Scheme for Technology Upgradation, Credit Guarantee Scheme, ISO 9000/ISO 14001 Certification Reimbursement Scheme, MSME Market Development Assistance Scheme, Lean Manufacturing and IT applications.

Delhi is considered to be an old and strong base for Indian Garment exporters. Although most of the garment exporters in Delhi are doing business since more than three decades but the awareness level regarding the schemes is low.

Madhav Lal emphasized on the role of the industry associations. He said, “We at the Ministry of MSME are working on creating a framework for collaborative approach towards right form of awareness. This collaborative approach will have strong participation from various industry associations. These associations will highlight key concerns of the respective industries.”

“The industry is already struggling with several issues, including growing cost of raw material, poor availability of labour, tough macro-economic conditions, Rupee-Dollar fluctuation etc. In such market scenario, we expect strong support from the Government,” said Anil Kapur, director of Faridabad based Vibgyor Garments Exports. “Although schemes are good and are drafted to motivate the entrepreneurs, but the focus must be given on proper and efficient implementation of these schemes,” he added.

Just two days ahead of its completion of two years in power, the Mamata Banerjee government announced its industry policy, which kept intact its stand on land acquisition, while incorporating a slew of financial incentives, including tax benefits for setting up industries in Jangal Mahal.

Addressing a press meet at the State secretariat here on Saturday, Ms. Banerjee said the draft textile policy and the policy on micro, small and medium enterprises were also ready. “We will wait till June 30 to get responses on these policies which we feel will catalyse an industrial resurgence.” The industry policy aims at generating 13.14 lakh jobs this fiscal and extends incentives to industries for hiring youths from the State employment bank.

Food processing and agriculture industries, textiles, apparel, leather, handicrafts, tourism, higher education, gems and jewellery, steel and IT are among the focus sectors while the negative list of industries includes amusement parks, sponge iron industries among others.

Industries Minister Partha Chatterjee said the policies of at least eight States had been studied before drafting West Bengal’s policy.

It may be mentioned that industry had been clamouring for a policy statement for sometime now and the former Union Minister Sougata Roy had embarked on this exercise since late last year. There were indications that an announcement would be made at the Bengal Leads — an industry promotion event at Haldia in January 2013. However that did not happen as it was felt that it would be a rush job.

The Federation of Indian Chambers of Commerce and Industry (FICCI) was the only chamber to react to the government initiative with its senior vice-president Siddharth Birla welcoming the textile policy saying that it was happy to see many of its suggestions incorporated in the document.

The West Bengal government today announced draft policies for textiles and small, micro and medium enterprises, in addition to a draft industrial policy.

Chief minister Mamata Banerjee said, “The textile and small, micro and medium enterprises sectors have good prospects and the state can empower them by providing them sops.”

The new draft policies for textiles and micro, small and medium enterprises (MSMEs) set out various incentives to try to spread growth into all corners of the state.

They provide for a slew of subsidies, including capital investments subsidies, interest subsidies, power subsidies, as well as tax reimbursements and stamp duty waivers, which are scaled depending on where entrepreneurs set up their businesses. The state has been divided into four zones, with a sliding scale of incentives for each area. Entrepreneurs will get more benefits if they set up in poorer districts like Purulia and Cooch Behar, than in Kolkata and the surrounding areas.

The textile policy also includes plans for a new research centre, the East India Textiles Research Association, and two new government agencies, the West Bengal State Spinning Mills Federation, and the West Bengal Silk Development Corporation Ltd.

The government also plans a mega power-loom park, three hosiery and apparel parks to be set up on a PPP model, and two new textile parks with common effluent treatment plants.

The government's draft policy for micro, small and medium enterprises has subsidies similar to those provided for in the textile policy, but at lower rates. It also plans a state expert group to support MSMEs, industrial estates for MSMEs, and a minimum of four MSME clusters in each district.

Both also have additional subsidies for women, Scheduled Caste and Scheduled Tribe, and minority community entrepreneurs.

The Federation of Indian Chambers of Commerce and Industry (FICCI) praised the draft textile policy which it said reflects many of the suggestions it gave to the chief minister in December last year.

The government on Friday said it expects textile exports to grow by 15 per cent in 2013—14, marking a turnaround for such shipments that declined by 4 per cent to $ 22.2 billion during April—February last fiscal.

“We hope textile exports will do better this fiscal. It is expected that these exports would grow by 15 per cent in 2013—14 as the demand from western markets is rising,” Minister of State for Textiles Panabaaka Lakshmi said after inaugurating an exhibition titled ‘Shilpangan’ here.

The six—day long fair was organised by industry chamber FICCI along with Rural Non—Farm Development Agency (RUDA) wherein exhibitors are showcasing a wide variety of handicraft items from Rajasthan.

The focus of the exhibition is to encourage and demonstrate the artefacts and other products developed by self—help groups, small and medium industry and craftsmen.

On demand for Indian textile items, Lakshmi said, “The exporters are getting good number of orders from the US market but the demand in European market is yet to pick up.”

Besides, she said, exporters are exploring emerging markets such as Latin America, Africa and Russia.

The US and EU together account for 60 per cent of the country’s total textiles exports.

During April—February 2012—13, India’s textiles exports declined by 4.1 per cent to $22.25 billion compared to the same period previous fiscal on account of weak demand from western markets.

The government on Friday said it expects textile exports to grow by 15 per cent in 2013—14, marking a turnaround for such shipments that declined by 4 per cent to $ 22.2 billion during April—February last fiscal. “We hope textile exports will do better this fiscal. It is expected that these exports would grow by 15 per cent in 2013—14 as the demand from western markets is rising,” Minister of State for Textiles Panabaaka Lakshmi said after inaugurating an exhibition titled ‘Shilpangan’ here. The six—day long fair was organised by industry chamber FICCI along with Rural Non—Farm Development Agency (RUDA) wherein exhibitors are showcasing a wide variety of handicraft items from Rajasthan. On demand for Indian textile items, Lakshmi said, “The exporters are getting good number of orders from the US market but the demand in European market is yet to pick up.”

Aiming for growth of 20% in technical textiles’ exports in the coming years, the government today said it will increase the plan allocation by five times for the sector.

“In the 12th Five-Year Plan (2012-17), we are going to give a push to technical textiles, which have a wide industrial usage, from hospitality to construction to defence. Therefore, the plan allocation would be increased five times over the allocation under the 11th Plan,” commerce and industry minister Anand Sharma told reporters.

He was speaking on the sidelines of FICCI’s Technotex 2013 programme.

The Department of Industrial Policy & Promotion has cleared Swedish furniture maker IKEA’s proposal to set up cafeterias at its retail outlets in India and sent it to the Foreign Investment Promotion Board for approval, Commerce and Industry Minister Anand Sharma has said.

“We have cleared it (IKEA’s proposal). The DIPP has conveyed its views to the FIPB,” Sharma told reporters on the sidelines of a textiles fair organised by FICCI. The proposal is now expected to be taken up at FIPB’s meeting scheduled on January 21.

IKEA plans to invest Rs 10,500 crore in setting up 25 single brand retail stores through its 100 per cent subsidiary. The FIPB has already approved Rs 4,200 crore of the Rs 10,500 crore proposed but had not approved setting up of the company’s signature cafeterias at the stores.

A fresh proposal by Ingka Holding Overseas BV, IKEA's parent company, for opening up of cafeterias was withdrawn by the DIPP in FIPB’s last meeting on December 31 2012.

“There were some clarifications that were sought from the company. It has given its clarification. We are satisfied. Our views have been conveyed to FIPB,” Sharma said.

The FIPB meeting scheduled on January 18 has been postponed and will now be held on January 21 as Economic Affairs Secretary Arvind Mayaram will reportedly not be in town, a government official told Business Line.

Commerce and Industry Minister Anand Sharma today expressed the hope that the FIPB would clear the Swedish furniture major IKEA's proposal to set up cafeterias at its single-brand retail outlets.

"We have cleared it. I have no reason to doubt because there were certain clarifications which were required. We are satisfied and accordingly DIPP has conveyed the same and forwarded it with its recommendations for the final approval," Sharma told reporters here after inaugurating FICCI's Technotex 2013 here.

He said this in response to a question whether the FIPB would approve IKEA's proposal on Monday. The FIPB meeting which was scheduled for January 18 has now been scheduled for January 21.

The proposal of Ingka Holding Overseas BV, IKEA's parent company, was withdrawn from the agenda of the board's meeting held on December 31 as the government had sought more information from the Swedish furniture major about its India investment plans.

FIPB has already approved Rs 4,200 crore out of a total of Rs 10,500 crore investment proposal by IKEA to open single- brand retail stores in India with only some categories of products allowed to be sold from a total of 33 that the company had applied for.

Following the part approval, the company made a representation to the industry department, which forwarded the request to FIPB seeking review of its November 20 decision. The issue was listed on the agenda of the last meeting of FIPB held on December 31.

Answering questions on his bilateral meeting with Pakistan Commerce Minister Makhdoom Amin Fahim in Agra at the Annual Partnership Summit, Sharma said: "There was no scheduled meeting".

Aiming a growth of 20 per cent in technical textiles exports in the coming years, the government today said it will increase the plan allocation by five times for the sector.

“In the 12th Five-Year Plan (2012-17), we are going to give a push to technical textiles which have a wide industrial usage from hospitality to construction to defence. Therefore, the plan allocation would be increased five times over what was the allocation under the 11th Plan,” Commerce and Industry Minister Anand Sharma told reporters here.

He was speaking on the sidelines of FICCI’s Technotex 2013 programme.

Technical textiles are specially engineered products used for various applications including medical, protective clothing, automotive, industrial, fire retardants and in agriculture sector.

“I do hope that the growth in technical textiles sector which is 10 per cent will increase to 20 per cent,” he said.

He also said that five parks related with the sector are coming up in five states — Rajasthan, Karnataka, Maharashtra, Tamil Nadu and Gujarat.

The minister also announced Rs 55-crore scheme to boost the sector in the North Eastern states of the country.

“It will help farmers and horticulturists to meet the challenges of post-harvest losses,” he added.

There is a need to take more steps to boost the overall textiles sector as it is going through difficult time, he said, adding textiles sector contributes 17 per cent in the industrial production and 4 per cent in the country’s GDP.

“But are we satisfied with this? No. We need to do more,” he said.

According to reports, the technical textile industry is expected to touch Rs 1,58,000 crore by 2016-17 from Rs 41,000 crore in 2010-11.

Industry body FICCI has suggested measures like labour reforms and keeping textile industry under the lowest slab of GST to boost the country's textile & clothing industry and raise India's share in world exports.

These recommendations have been submitted to National Manufacturing Competitiveness Council Member Secretary Ajay Shankar, who is also the Chairman of Expert Group on National Textiles Policy constituted by Government of India.

The measures suggested include providing "dormitories" for ensuring supply of skilled and unskilled labour to the textile factories through a provision in the National Textiles Policy, revisiting excise duty structure on fiber and yarns and bringing down duties on man-made fibers at par with cotton to bring neutrality in the sector.

"The textile industry should be kept in the lowest slab of Goods and Services Tax (GST) as it provides a basic necessity to the masses with large scale employment potential," Chairman of FICCI Textiles Committee Shishir Jaipuria said.

Other measures included setting up of pollution free zones for textile processing to help in increasing textiles exports from India.

A separate scheme in this regard needs to be introduced, which provides additional support of Rs 5 crore for each Park for setting up Common Effluent Treatment Plant (CETP), FICCI said.

"Assuming India's GDP grows by 7 per cent on an average over the 12th five-year plan period (2012-17) as per the estimates of Planning Commission and if the domestic textiles industry also grows by 7 per cent, it would mean that the textiles industry would be a USD 278 billion industry, of which exports would account for USD 145 billion," FICCI said.

As per the 12th Plan working group on textiles and apparel, the textiles sector will create an additional employment of 15 million by 2016-17, which means the sector can provide 30 million additional jobs by 2023, FICCI said.

Given that textiles & clothing sector is a labour intensive sector, it can provide employment to at least an additional 20 million people from the current 45 million to 65 million by 2023, the industry chamber observed.

Globally, the total textile and apparel trade has grown at a CAGR of 6.7 per cent in the last 11 years, being valued at USD 706 billion with major markets being USA, Germany, Japan, China and UK. India has a share of 4 per cent in global exports of textile and apparel, FICCI said.

Industry association FICCI has submitted a twenty-point agenda to the Bengal government to revive the textile industry and double the state's share in the sector to 10 per cent from 5.24 per cent by 2022-23.

It has recommended a reduction in the transaction cost, besides the allocation of land for textile parks when more than 10 industry units express interest to set up one.

Bengal's textile sector has to grow 17.2 per cent per annum to reach $21.5 billion from $2.9 billion. This is likely to employ at least 10 million people.

In its Vision 2022-23, FICCI noted that the state was still lagging behind Karnataka, Gujarat, Tamil Nadu, Haryana, Maharashtra and Rajasthan. The textile policy for 2007-12 has not helped the sector to realise it potential.

The industry body has proposed a power subsidy of Rs 1.5 per kwh (kilowatt hour). The reimbursement of 25 per cent of the cost of land, including acquisition charges, for units in designated zones has also been recommended.

FICCI wants the state to provide additional support to parks for infrastructure such as roads, power and water supply. The exemption of entry tax on plant, machinery and procurement of fibres and yarns has also been recommended.

The need for skill development through viability gap funding and direct assistance by the government for setting up institutes by the private sector has been highlighted.

FICCI has suggested that the state provide 50 per cent of the project cost, or Rs 5 crore, whichever is less, for a common effluent treatment plant in textile clusters along with a 5 per cent capital subsidy and a 6 per cent interest subsidy.

Freight subsidy to units in backward regions should also be considered.

The Federation of Indian Chambers of Commerce and Industry has outlined a 10-year roadmap for redeveloping textiles sector in West Bengal and to ensure balanced and inclusive growth.

The industry body recently submitted its suggestions for reviving the textiles industry base in the State to Chief Minister Mamata Banerjee.

The suggestions in the form of Vision 2022-23 talks about doubling the State’s share in the country’s textiles industry to 10 per cent.

“West Bengal should grow at around 17 per cent to increase the size of its textiles industry to $21.5 billion from the current $2.9 billion,” FICCI said.

According to FICCI, the target, once achieved, could provide employment to nearly 10 million people by 2022-23. “Out of this at least 75 per cent will be in the unskilled and semi-skilled level,” it said.

Currently, close to 1.5 million people are employed by the textiles industry in the State.

“The state has a long history and tradition in textiles. However, its textiles sector is now lagging behind other states such as Karnataka, Gujarat, Tamil Nadu, Haryana, Maharashtra and Rajasthan. The State has the potential to revive its textiles industry and be a major part of global value chain in this sector,” the report said.

Handloom, powerloom, hosiery, jute and silk are the major segments of the State’s textiles industry.

Apex chamber FICCI has submitted its suggestions for reviving the textiles industry base in West Bengal to chief minister Mamta Banerjee. The suggestions in the form of Vision 2022-23 outline a 10 year roadmap for redeveloping textiles sector in the State and to ensure balanced and inclusive growth.

FICCI stated that the Vision 2022-23 talks about doubling the share of West Bengal in India's textiles industry from the current 5.24% to 10% by 2022-23 and increasing the size of the textiles industry in the state from the current $2.9 billion to $21.5 billion during the period. The expected and required rate of growth to achieve the above targeted share would be 17.2% per annum during the period. Subject to certain assumptions, this could provide employment to at least 10 million people by 2022-23. Out of this at least 75% would be in the unskilled and semi-skilled level if one goes by national yardstick.

The apex chamber has pointed out that while the State has a Textiles Policy 2007-2012 but it was not adequate for realizing its true potential in textiles. Keeping this in mind, FICCI realized the need for an ambitious long term textiles policy for the State namely 'West Bengal's Textiles Policy 2022-23'.

Incidentally, West Bengal has a long history and tradition in textiles. However, the State's textiles sector is now lagging behind other States like Karnataka, Gujarat, Tamil Nadu, Haryana, Maharashtra and Rajasthan. The State has the potential to revive its textiles industry and be a major part of global value chain in this sector. Traditionally, Handlooms, Powerlooms, Hosiery, Jute and Silk are the major segments of West Bengal's textiles industry. Though late, but readymade garment segment has also got some base in the State. It is estimated that more than 1.5 million people are employed by textiles industry in West Bengal.

States like Maharashtra, Gujarat and Tamil Nadu have recently announced new policy and major incentives for the textiles sector in their State. In this context, FICCI noted that West Bengal government would have to come out with a really attractive package to attract large number of investors.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has outlined a ten-year roadmap to re-develop the textiles sector in West Bengal.

The revival and re-development of the industry would help ensure balanced and inclusive growth.

The industry body recently submitted its suggestions for reviving the textiles industry base in the State to the Chief Minister Mamata Banerjee.

The suggestions in the form of Vision 2022-23 talks about doubling the State’s share in the country’s textiles industry to 10 per cent.

“West Bengal should grow at around 17 per cent to increase the size of its textiles industry to $21.5 billion from the current $2.9 billion,” FICCI said.

Employment

According to FICCI, the target, once achieved, could provide employment to nearly 10 million people by 2022-23. “Out of this, at least 75 per cent will be in the unskilled and semi-skilled level,” it said.

At present, close to 1.5 million people are employed by the textiles industry in the State.

The industry body further said the State’s Textiles Policy 2007-2012 was not adequate for realising its true potential.

“The State has a long history and tradition in textiles. However, its textiles sector is now lagging behind other States such as Karnataka, Gujarat, Tamil Nadu, Haryana, Maharashtra and Rajasthan. The State has the potential to revive its textiles industry and be a major part of global value chain in this sector,” the report said.

Handloom, powerloom, hosiery, jute and silk are the major segments of the State’s textiles industry.

The Rajasthan Government will adopt a new policy for the textiles sector by March next year with emphasis on skill development, manufacture and export promotion, giving a boost to the textile industry in the State and providing it a competitive advantage in the domestic and international market.

Industries Minister Rajendra Pareek made the announcement at a textiles fair, “Vastra-2012”, which was inaugurated by Chief Minister Ashok Gehlot in Sitapura industrial area here on Thursday. The fair has been organised jointly by the Rajasthan State Industrial Development & Investment Corporation (RICCO) and the Federation of Indian Chambers of Commerce & Industry (FICCI).

Mr. Pareek said the Vastra would be organised annually to showcase the best and the latest in the textile and apparel industry, ranging from fibre and fashion to infrastructure and technology. The four-day “Vastra-2012” has attracted over 350 buyers from 60 countries. The Minister said since all sectors need trained manpower, the State Government is focusing on new schemes for training the workforce. This would enable the State to convert the increasing population into a “productive asset”, he affirmed.

Mr. Gehlot said Rajasthan has a tremendous potential in the textile sector and the fair would help boost exports. “In the days to come, the textiles and apparel sector [in the State] will improve further because of the Delhi-Mumbai Industrial Corridor. A lot of facilities will be provided in the six zones being set up along the corridor.”

He pointed out that the Union Government was also focusing on encouraging the manufacturing sector, with textiles emerging as a major component of the scheme. “The Union Government has also set the target of exports worth $ 40 billion in 2012-13, which is 22 per cent higher than the previous year. Our export is being adversely affected due to sluggish demand in the U.S. and Europe.”

Mr. Gehlot said textile exports from Rajasthan had touched Rs.3,500 crore annually and the State had already framed policies for promoting industries and exports with an identical emphasis on development of infrastructure. Nine textile parks have been sanctioned in the State and a power loom mega-cluster would be established in Bhilwara.

Spread over 5,000 sq. metres, the fair presented live demonstrations of traditional textile crafts, business shows, concurrent conferences and buyer-seller meetings. About 170 exhibitors covering the entire sector are taking part in the event through 400 stalls, while there are individual State pavilions from Rajasthan, Gujarat, Kerala and Haryana.

The state government will come out with a new textile policy by March 31 to give a fillip to the sector, chief minister Ashok Gehlot said here on Thursday during the inauguration of Vastra-2012.

"Textile industry is one of the key segments of the state's economy. It employs a large number of people. The policy will play an important role in making the industry more competitive. The government will implement it by March 31 next year," Gehlot said.

He said the sector is facing headwinds from the slowdown in the developed economies and events like Vastra-2012 is expected not only to create momentum but also open up new markets for the exporters.

Out of the 350 international buyers who are visiting the fair, many of them have come from non-traditional markets apart from the major export destinations like the US and European countries, said RIICO MD Naveen Mahajan.

The sub-committee headed by industries commissioner has prepared the draft of the textile policy after talking to industry associations and other stakeholders, said Sunil Arora, principal secretary, industries.

Besides the accent on a progressive strategy offering attractive incentives to the investors, the policy would give priority to skill development and boosting exports, industries minister Rajendra Pareek said. Jointly organized by RIICO and FICCI, and pitched as 'Fibre to Fashion', the business-to-business fair saw the participation of 175 exhibitors representing the whole spectrum of the value chain.

Rajasthan government will introduce a policy for the textiles sector by March 2013 for making the industry more competitive both in the domestic and international markets, the state Chief Minister Ashok Gehlot said today.

“By the end of the current fiscal, we are going to introduce a policy for the textiles sector that will help the industry,” Gehlot told reporters after inaugurating the textiles fair ‘Vastra-2012’ here.

The fair is being jointly organised by the Rajasthan State Industrial Development and Investment Corporation (RICCO) and industry chamber FICCI.

The policy would emphasise on manufacturing, skill development and boosting exports, Rajasthan Minister for Industries Rajendra Pareek said.

However, he did not reveal details about the required funding for the proposed policy.

The State Government is focusing on the textiles sector which exports items worth Rs 3500 crore annually and employs thousands of people, Principal Secretary in the Rajasthan Government Sunil Arora said.

The State Department of Industries has prepared a draft policy which would be circulated soon to concerned departments seeking their comments.

“We have worked out a draft. Now, we will hold one or two meetings with few stakeholders and after that the Chief Secretary will send the proposed policy to the state Cabinet for its approval,” Arora added.

At present, there is no separate policy for the textiles sector and the state feels that there is a need to push the sector in the backdrop of weak demand.

“Amidst sluggish demand both in domestic and global markets (the US and Europe), we are making efforts to further expand and upgrade the textile industry through such fairs, Gehlot said adding the exhibition would be organised every year.

The business-to-business exhibition is aimed at providing market access, networking for new business partners, updating on the latest technologies and attracting investments in the sector.

Speaking at the occasion, FICCI Director General Arbind Prasad said the fair will provide an opportunity for disseminating technology and interaction with experts, among other things.

Over 175 exhibitors are showcasing a wide variety of textiles and apparel range at the four-day long fair which is expected to be attended by over 400 buyers.

Industry chamber, FICCI, has written to the Ministry of Textiles seeking a reduction in excise duty on man-made fibres (MMF) to pre-stimulus levels. It has also sought equal treatment in terms of taxation to both cotton and MMF. “The excise duty on raw materials such as PTA, MEG, Caprolactam should also be considered for reduction to avoid the emergence of an inverted duty structure,” the Federation of Indian Chambers of Commerce and Industry said in a statement. Mr Shishir Jaipuria, Chairman, FICCI Textiles Committee & Managing Director, Ginni Filaments, said, “In terms of excise duty between cotton and man-made fibres, the gap has further widened as a result of a hike in general excise duty to 12 per cent in the Budget”. The excise duty on man-made fibres was 8 per cent in 2006 and was further brought down to 4 per cent in the stimulus package announced in 2008-09. However, the excise duty on MMF was increased to 8 per cent in the 2009and subsequently to 10 per cent in 2010.

To give a fillip to the technical textiles industry, FICCI has asked for its inclusion under the Government's Special Product Focus Scheme (SPFS) for exports.

As part of its recommendations to the Ministry of Textiles on taking up certain issues with the Finance Ministry, it has sought correction of the inverted duty structure, fixing drawback and DEPB (Duty Entitlement Pass Book) rates for new products.

The industry chamber has also said that the industry needs to be kept out of GST for at least two years and be given permission for duty-free import of speciality fibres and yarns not produced in India. Besides, it has also asked for a reduction in excise duty on man-made fibres and yarns from 10 to 4 per cent.

High export potential

“Technical textiles have high potential for exports. There is a need to incentivise such products and sectors under the SPF scheme of Foreign Trade Policy, which would make them eligible for grant of Duty Credit Scrips equivalent to 5 per cent of FOB value of exports,” it said, adding that currently, these items are entitled for a duty scrip of only 2 per cent.

Such textiles are used for various applications, such as geo-textiles, hygiene, medical, protective clothing, and so on, and are at a nascent stage of production in India.

There is a huge potential for their exports to developed countries, but unfortunately they are bulky in nature and the transportation costs are prohibitive, said FICCI. “The technology is also highly guarded and the cost of plant and machinery is very high. Also, constant innovation and development leads to higher obsolescence,” it said.

Import duty

FICCI has also emphasised on the need to rationalise the Customs duty structure in the sector. Effective total Customs duty on raw materials required for producing products such as diapers is at 26 per cent, which is almost the same as the import duty on import of finished diapers at 26.8 per cent. Hence, there is a need to reduce import duties on raw materials to encourage manufacturers to produce domestically. Additionally, the chamber has also sought Customs duty exemption on certain raw materials and additives that are primarily imported.

There is a need to develop a comprehensive R&D policy for Indian textiles sector to make it fundamentally strong and foray in emerging areas, according to Federation of Indian Chambers of Commerce and Industry (FICCI). The textile sector is the second largest provider of employment after agriculture. Indian textile sector contributes about 14% to industrial production, 4% to the GDP and 17% to the country's export earnings.

According to FICCI, there is a need for formation of 'National Textile Research Council' with participation of government, institutions, academia and industry which will act as a steering committee to initiate and monitor R&D in India.

The chamber suggests that the government could create a national consortium which would bring together various stakeholders in the textile value chain to quickly adopt new technologies.

FICCI is of the view that financial support in the form of Grants for state-of-the-art machines and leading government and government aided engineering colleges to carry out research on latest and emerging technologies. Government should give special incentives for easy adoption of these technologies that reduce carbon footprint.

According to the chamber, there should be ongoing review and evaluation of research work to ensure benefits from R&D to the industry. "There should be awareness on the practices and on intellectual property to encourage innovation," says FICCI.

FICCI also feels that there should be some international linkages wherein international experts should be at the board or advisor level in Indian Research Institutes. There should be signing of MOUs with leading international research institutions for conducting joint research projects.

Apart from this, the chamber suggests to explore and apprise the textile industry about environment management, eco-friendly processing, carbon credit. "There should be a special focus on materials that reduce carbon footprint and are obtained fro renewable sources," suggests FICCI.

The government is, within the next two weeks, likely to consider providing additional funds for modernisation of the textile industry. The amount will be in addition to the Rs 8,000 crore provided in the 11th Five-Year Plan. "I expect the Cabinet to take it up for deliberation within the next fortnight," textile secretary Rita Menon said on Thursday at a FICCI function. The government had provided Rs 8,000 crore as assistance for the textile industry's modernisation in the 11th Plan (2007-12), under the Technology Upgradation Fund Scheme (TUFS). While there are 18 months left for the conclusion of the current Plan, the expenditure up to June 2010 has exceeded the allocations. Meanwhile, minister of state for textiles, Panabaaka Lakshmi, in a written reply in the Lok Sabha, said the government had suspended the sanction of new projects under the TUFS.

The government is set to launch Rs 200 crore mission for promotion of technical textiles, while the Finance Ministry has cleared setting up of four new research centres for the industry, which include products like mosquito and fishing nets, shoe laces and medical gloves.

The Technology Mission would unleash investments in the technical industry, Textiles Secretary Rita Menon said at a FICCI event here.

She said the mission would address the problems faced by the industry in terms of lack of basic infrastructure, technology, skilled manpower, R&D support, training facilities and laying down of regulations.

The Finance Ministry has already cleared an investment of about Rs 95 crore for setting up four new 'centres of excellence' for the technical textiles.

"The Technology Mission on Technical Textile has received approval from Ministry of Textiles...The Expenditure Finance Committee (in the Finance Ministry) has cleared the way to open four new centres of excellence (CoEs)," Menon said

Along with the existing CoEs, the total number of such centres will go up to eight.

These centres are designed to focus on development of technical textiles used in medical, safety and protective gears and agri products, she said.

Global technical industry is estimated at $127 billion and its size in India is pegged at $11 billion, according to a joint study of the Ministry of Textiles and the FICCI.

The industry is characterised by the presence of multi-nationals like Ahlstrom, Johnson and Johnson, Du Pont, Procter & Gamble, 3M, Kimberly Clark and SKAPs. Most of these firms have their manufacturing plants in India.

The domestic companies active in the industry include SRF, Garware Wall Ropes, Entury Enka, Techfab India and Vardhman.

The Government will use satellite technology to assess cotton prospects for the current season and review the export policy in the wake of rising prices of the natural fibre, a senior official said on Thursday.

"When the Cotton Advisory Board (CAB) meets, it will have an assessment based on the satellite imagery and the inputs of the Ministry of Agriculture," the Textiles Secretary, Ms Rita Menon, told reporters on the sidelines of a Ficci function here.

The CAB, constituted by the government to monitor domestic and international prices of cotton and cotton yarn, is likely to hold a review meeting in December or January, she said.

The cotton season runs from October through September.

The government has allowed export of 55 lakh bales (170 kg each) of cotton for the current season without duty.

The Indian textile industry is facing tough competition in the US, as exporters from smaller countries like Bangladesh are cornering the lucrative market at a faster pace, a FICCI study said.

"In addition to China, countries like Indonesia, Vietnam and Bangladesh have managed to perform better than India in the US market in 2009," the study said.

Bangladesh, Indonesia and Vietnam managed to increase their share in the US textiles and apparel import in 2009 year on year at a faster rate than India.

India's share increased by 0.17 percentage points in 2009 over the previous year but share of Bangladesh, Indonesia, Vietnam and China increased by 0.5, 0.4, 0.67 and 4.3 points, respectively, the study said.

China accounts for about 37 per cent of the US's textiles and apparel import while India's share is less than six per cent. Vietnam has already surpassed India in the US market.

In the EU market too, India's textile export witnessed higher fall than that from countries like China, Turkey and Pakistan. India's textiles exports to EU fell by 15.7 per cent.

The US and EU accounts for India's 60 per cent textile exports. India's textile export in 2009-10 were valued at $20 billion.

Raising concern over India's share in U.S. imports of technical textiles and non-woven fabrics which is way behind China, Federation of Indian Chambers of Commerce and Industry (FICCI) on Tuesday said the domestic industry needed R&D support.

“India's share in U.S. imports of special purpose fabric (technical textiles) and non-woven fabrics was merely 2.6 per cent and 1.2 per cent, respectively in 2009 as compared to China's share of 15 per cent and 12 per cent,” a FICCI study said.

India needs to strengthen its capabilities to tap this growing market as technology-intensive products are the future, it said. The study said there was a need to formulate a comprehensive research and development (R&D) policy for the Indian textile industry.

The chamber has submitted its recommendations to the Ministry of Textiles in this regard.

Eco-friendly textiles

“The policy should aim at increasing the country's share of advance technology-based products and high value-added items in global market to 7 per cent in the next five years from less than 2 per cent now,” the FICCI study said.

The chamber has also recommended setting up of a National Textiles Research Council with a seed-money of Rs. 30 crore and an annual grant of Rs. 10 crore.

The chamber said the policy should provide a special focus on eco-friendly textiles that would help in reducing carbon footprint.

Raising concern over India's share in U.S. imports of technical textiles and non-woven fabrics which is way behind China, Industry body FICCI on Tuesday said the domestic industry needed R&D support. “India's share in U.S. imports of special purpose fabric (technical textiles) and non-woven fabrics was merely 2.6 per cent and 1.2 per cent, respectively in 2009 as compared to China's share of 15 per cent and 12 per cent,” a FICCI study said. India needs to strengthen its capabilities to tap this growing market as technology-intensive products are the future, it said. The study said there was a need to formulate a comprehensive R&D policy for the Indian textile industry.

Potency of the Indian textile industry has been in low value and the Government needs to formulate a comprehensive R&D policy to make the sector 'fundamentally strong', the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Tuesday.

"There is a need to develop a comprehensive R & D policy for Indian Textiles sector to make the sector fundamentally strong and foray in emerging areas," FICCI said in its recommendations submitted to the Ministry of Textiles.

The industry body added that currently the commodity products of Indian textile industry are susceptible to intense competition and also few entry barriers. According to the report, a comprehensive R&D policy need to be formulated by the government, which could provide special focus on textile materials that reduce carbon footprint and are obtained from renewable sources.

"In addition, the competitive edge for Indian textile industry will also come from adoption of new and advance materials with functional properties (like anti-microbial fabrics for patients' dress) in the textiles sector," it noted.

The chamber added that Rs.495 crore corpus will be required for five years to implement the suggested R&D policy, and it should aim at achieving 7 percent share in global market of advance technology based products and high value added items in next five years.

Outlining the objectives of such a policy, it has also suggested setting-up of National Textiles Research Council with seed money of Rs.30 crore and an annual grant of Rs.10 crore.

"This could be the apex body for undertaking and providing direction to research in textiles in the country," it viewed.

Also, the industry body also pointed out that India's share in US imports of special purpose fabric and non-woven fabrics, both of which are high growth products in US imports, was merely 2.6 per cent and 1.2 per cent in 2009 as compared to China's share of 15 percent and 12 per cent.

"Evidently, these technology intensive products are the future and India needs to strengthen its capabilities to tap this growing market," it concluded.

Concerned over the fragile recovery in the textiles sector and apprehensive over the impact of the appreciating rupee in 2010, industry body Federation of Indian Chambers of Commerce and Industry (FICCI) has demanded stimulus package for the Indian textiles industry for 2010-11.

Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with the Union textiles ministry is holding a one-day workshop on `Opportunities for women entrepreneurs in textile industry' today. The workshop will focus on creating awareness about technology upgradation fund (TUF) among women entrepreneurs and encouraging them to invest in the textiles industry. The workshop will be held at Mayfair Banquets in Worli between 11 am and 4 pm.

Union Textiles Minister Dayanidhi Maran on Wednesday announced that the government would restructure its textile policies for infrastructural development soon in a bid to achieve a growth target of 12 per cent in the next five years.

Speaking at a function organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Mr. Maran disclosed that he had, during his visits to Las Vegas, Zurich, Milan and Istanbul, sought cooperation from major international players to collaborate with the Indian textiles industry in the manufacture of fabric and fermenting, setting up of Greenfield units in textile machinery, manmade fibre and yarn and create brand equity with Indian apparel companies.

In a bid to reverse the present trend, the government has set up a working group to formulate the National Fibre Policy and the recommendations are expected shortly. Mr. Maran talked of giving importance to manmade fibre rather than cotton based textiles which had affected most textiles companies.

He also called upon the textile industry to have a better product mix and look beyond the western markets and develop commercial ideas for application of fibre for non-clothing applications besides developing new technologies with high energy and resources efficiency to adhere to environment norms.

The target was to achieve a growth target of 12 per cent to reach a market share of $115 billion in the next five years and corner a global share of at least 7 per cent and this was not possible without reorienting the textile policy and the production system.

India's textile industry urgently needs to diversify beyond its traditional markets of the US and Europe to remain competitive in the wake of the global economic downturn, New Delhi warned yesterday.

Dayanidhi Maran, the minister of textiles, said the industry was highly vulnerable to its overdependence on western markets and had not sufficiently embraced new technology to maintain a competitive edge against rivals such as China, Korea and Indonesia. He described the sector, which relies heavily on state support, as "monolithic" and in need of an overhaul of its "entire production system".

India's textile industry is a key export sector. The second largest employer after agriculture, the fragmented textiles sector numbers about 15,000 companies and employs about 50m people. Its exports, worth $20bn (€13.9bn, £12.5bn) a year, represent about 15 per cent of the country's total exports. Many of its companies export almost exclusively to the west. Welspun, supplier of towelling products to US retailer Walmart, exports 90 per cent of its production to the US and Europe.

"We don't look beyond US and the EU. Our product mix is very generalised; our product basket is limited to tops, trousers, T-shirts and some hosiery items," Mr Maran said in an address to the Federation of Indian Chambers of Commerce and Industry in New Delhi.

"We do not know that people require clothing anywhere else other than US and the EU. We have scant commercial idea about application of fibres for non-clothing applications."

India's textiles industry was hit hard by the global economic downturn as exports fell dramatically and had to rely on government support. Nonetheless, the sector shed tens of thousands of jobs.

The industry has been hit by high energy costs, a rise in the price of leather and cotton, which is controlled by the central government, and slowing demand in the developed world, to which 55 per cent of products are exported.

A delegation of the Federation of Indian Chambers of Commerce and Industry (FICCI) on Wednesday suggested to the Union Minister for Textiles, Mr Dayanidhi Maran, that while there should be a temporary 100 per cent tax exemption for the textile industry from export earnings, the drawback rates should be hiked by five per cent and export credit should be provided at seven per cent till 2010.

The delegation, led by Mr Harsh Pati Singhania, President, FICCI, further added that exporters should be exempted from the Service Tax, the Terminal Excise Duty and the Fringe Benefit Tax, while the export incentives for cotton should be withdrawn and its Minimum Support Price need not be raised any further.

The industry chamber made these suggestions keeping in view that Indian exports to the US have fallen by 14 per cent during January-April, 2009.

Textiles is the second largest employer in the country after agriculture, and would require skill development in a “Mission Mode approach” to absorb 10 million people in the next five years, said FICCI.

With weak demand in traditional markets such as the US and the EU, FICCI suggested that the Government provide 100 per cent risk coverage through cheaper ECGC (Export Credit Guarantee Corporation) schemes for exports to countries in Latin America and West Asia.

Among other measures, FICCI suggested changes in labour laws, encouraging foreign direct investment in the sector, exports to non-traditional markets, besides an early implementation of the Goods and Services Tax. It also asked for an extension of working hours and that units employing up to 1,000 people should be outside the purview of the Industrial Disputes Act.

While India’s exports fell in January-April, that of Bangladesh and Vietnam increased by 12 per cent and 5.2 per cent respectively. Today, while India’s share in the US apparel market is 5.7 per cent, Vietnam’s and Bangladesh’s stands at 8 per cent and 6.1 per cent respectively, said FICCI.

China’s share, however, remains much higher at 32.4 per cent.

The textile industry is seeking removal of excise duty and taxes, increased drawback rates and easier credit as a booster for the ailing sector.

The $52 billion labour-intensive sector is estimated to have lost 1 million jobs as the economic slowdown hurt demand for apparels and firms cut production.

The Confederation of Indian Textile Industry (CITI) has asked for removal of excise duties on all man-made fibres and scrapping of service tax for the sector ahead of the union budget in July.

Separately, a FICCI delegation led by its president, Harsh Pati Singhania, met Union Minister of Textiles Dayanidhi Maran to submit its comprehensive agenda for the textile sector. The industry body has pressed for increasing duty drawback rates for the textiles sector by 5 per cent to ensure that all duties (including local taxes) are reimbursed to exporters.

Federation of Indian Chamber of Commerce and Industries (FICCI) has immediately sought a `Special Textile Package` for the industry in the view of steep decline in the profitability and investment in the Indian textile industry which may lead to large scale lay-offs in the industry.

FICCI noted that profitability of Indian textile industry fell by over 99 per cent in June 2008 quarter and investment in the current year (for April-July) has been less than one third of last year for the same period making the exports to United States dip by 14 per cent.

The apex chamber also said that competing countries are also bailing-out their textiles industry in the midst of these crises and in fact, Pakistani government has only last week approved the incentive package for its textile industry.

Under the `special package,` FICCI has demanded moratorium for one year on term loans for textile industry, increased drawback rates, export credit at international rates, extension of sunset clause for Export-Oriented Units (EOUs) for five years, release of pending funds of last year under Technology Up gradation Fund Scheme (TUFS), reduction of excise duty on man-made fibres and 10 per cent import duty on man-made fibres.

The chamber emphasised that unless these steps are implemented swiftly to bail-out the Indian textiles industry, these is a risk of large scale lay-offs in the industry.

Pointing out the employment intensive nature of the industry, FICCI said that for every one unit of capital in textiles industry, seven people are employed whereas in case of steel and auto sector only one and two people are employed respectively for every unit of capital. So diminishing investment in the textile sector could have significant impact on the employment front.

Textiles minister Dayanidhi Maran on Wednesday pitched for a stimulus package for the textiles sector, which has witnessed several job losses and negative growth owing to the slowdown in the major markets of the US and EU. “At this point, I can say that a stimulus package is the need of the hour. We have to wait for a package,” Maran told reporters here after meeting a delegation of Apparel Export Promotion Council (AEPC).

Maran, however, did not say what kind of incentives were needed to revive the sector. “Finance minister is aware of it, prime minister is aware of it,” he said. He said the industry was passing
through challenging times.

“There has been negative growth in the textiles industry, due to the slowdown in the US and EU and because of high input costs,” he said,

Textile and clothing exports dipped by about two per cent in 2008-09 to around $22 billion.

“We need to go for short-term measures, financial relief, tax relief. So that they (the sector) come back in the main stream,” Maran added. The government had announced several steps, including additional allocation of Rs 1,400 crore towards the technology upgradation funds scheme, to prop up the textile industry which has laid off over five lakh people in the past few months. Earlier in the day, apex industry body FICCI submitted a comprehensive agenda to Maran demanding immediate measures like scaling-up skill development initiatives and increasing duty drawback rates by at least 5 per cent for the sector.

FICCI president Harsh Pati Singhania said the textiles sector would require “mission mode approach” at a large scale to absorb 10 million people in the, next five years. “There is a need for increasing duty drawback rates for the textiles sector by at least five per cent to ensure that all duties (including local taxes) are reimbursed to the exporters,” the chamber said, adding that government’s skill development programmes need to be scaled-up to train at least two million people in a year.

It said that the government should provide 100 per cent risk coverage.

Industry chamber FICCI has called for stronger industry-defence partnership to promote innovation in technical textiles in India.

In its report on `Opportunities for Technical Textiles in Indian Defence`, FICCI said there is a need for faster testing and trial procedures for the approval of a product in Indian defence, especially for the textiles items.

Technical textiles refers to protective and special clothing used by defence forces, which is largely imported by the government.

The study reveals that personnel uniforms alone account for Rs 2,000 crore expenditure by the Indian defence forces. "Besides uniform, the industry could also provide parachutes, bullet proof jackets, geo-textiles for border roads and tents, thus offering a new and large market for the Indian textile manufacturers," the report said.

The domestic technical textile industry needs to create a platform for stronger industry- defence exchanges and partnership to capture a major part in the country`s outlay of about Rs 2,000 crore on clothing and fabric needs of its armed forces and security personnel.

According to a study by industry association FICCI, India spends a large amount of money on purchasing uniforms for the 1.5-million-strong armed forces and an equal number of paramilitary and security forces.

But the USD 8-billion Indian technical textile industry is losing the business as most of the security-related orders are being carted away by foreign companies, the study said.

"A large number of the armed forces and security personnel are required to be equipped with protective and special clothing that are called `technical textiles`. This requirement is functional in nature and offer a large market for Indian technical textiles manufacturers," the study said.

Technical textiles are also used by defence and para- military forces for their parachutes, bullet proof jackets, geo-textiles for border roads, tents and mosquito nets.

Emphasising stronger industry-defence exchanges and partnership to develop large domestic manufacturing base, the study said strong relationship was imperative, as small- and medium-sized manufacturers found it difficult to penetrate the defence market due to irregular nature of such contracts.

To promote innovation in the technical textile field, it said the Defence Ministry should speed up testing processes and trial procedures for enabling quicker approvals for the Indian products.

"There is a need to develop and support regular industry fora to exchange information related to current and future defence requirements, and the industry should be engaged even at the stage of development of technical specifications by the defence forces," the study suggested. Besides, the Defence Ministry should implement the lowest bidder concept "with caution" in order to encourage domestic manufacturing quality and innovation in technical textiles.

"Many companies say that they do not receive contracts from the defence forces because of the lowest bidder concept, even if their products are of better quality, durable and suitable for the personnel," the study said.

Urging that indigenous manufacturing capability in the technical textiles area is important for the nation, the study said that domestic market would ensure reliable and regular supply of defence requirements during exigencies.

However, the study said the current characteristics of technical textiles for Indian armed forces were not adequate and needed to be upgraded to global standards.

There are a number of features being adopted by defence forces the world over that are not found in Indian context such as self-detoxification, sweat management, and integration of hi-tech sensors and actuators, it noted.

"A 21st Century battle suit embedded with nano technology can stop bullets, detect chemical and biological agents, monitor wounded soldier`s vital signs, administer basic first aid and also communicate with the headquarters," it said.

The fabric used by the defence forces should be multi- risk protective against heat, flame, electric arc, static electricity, projectiles, wind, water and liquid chemicals. Simultaneously, the fabric need to be comfortable, light weight, breathable and durable," it noted.

Tents were currently susceptible to mildew formation and ultra-violet degradation, and hence these required chemical finishes to counter the conditions. The Combat Helmets needed to meet high-powered ballistics and the BRVA needed to cost less without compromising on quality.

Keeping in view the forthcoming second fiscal stimulus package, the Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the government to pay attention towards the textile sector that has witnesses a negative growth in the year 2008 and has suggested a slew of measures for the same.

According to FICCI, keeping in view the decline in index of industrial production (IIP) for textiles in September at 4.9% and -7.1 % in October 2008, one of the major change that the government should make is to allow liberal rescheduling of term loans taken by textile firms by permitting deferment of eight quality installments of the principal amounts. Without such a rescheduling, most of the loans run the risk of turning into non-performing assets (NPAs), creating serious problems both for the industrty as well as the banking sector. The period for repayment of technology upgradation fund scheme (TUFS) loans has to be extended from current 10 years to 12 years in order to accommodate the rescheduling.

FICCI is of the view that the entire subvention of 4% on export credit withdrawn from October 1, 2008 needs to be reinstated, atleast for a period up to March 31, 2009. There is a need to provide naptha, furnace oil and high speed diesel (HSD) to captive power plants of textile units without customs or excise duty.

Further, it has been felt that there is a need to restore the duty drawback rates that prevailed before the reduction effected in September 2008 and also refund the state level duties of 4-6%.

The packing credit for cotton purchase may be allowed liberally at 7% interest, against a margin of 10% and for a period of nine months. Also, all procured cotton should be sold promptly to Indian mills at international price or 10%below the procurement price.