Textile sector, now going through recession, is looking for various supportive policy measures from the government to grab the emerging global opportunities. While the centre looks to address macro issues particularly towards controlling inflation, improving general economic conditions, infrastructure and measures aimed at ease of doing business, the weightage given to the textile industry is not enough.
The industry is facing severe recession for almost 18 months due to glut in the global market, delay in conclusion of FTAs, undue delay in disbursement of TUF subsidies and a host of other issues, according to M Senthilkumar, chairman, Southern India Mills’ Association (SIMA).
Renowned economist and corporate advisor, S Gurumurthy and the SIMA chief said that the industry faces two challenges – one on the raw material front and the other on market access.
Senthilkumar’s appeal includes release of adequate funds to clear all pending TUF subsidies, three per cent interest subvention for all textile products, suitable market specific incentives under MEIS till FTAs are concluded, reducing hank yarn obligation to 20 per cent (from 40), industry-friendly cotton trading policy, removing five per cent import duty, four per cent special additional duty, anti-dumping duty etc, so as to make MMF available at international prices.
He said the first nine months of the year, has seen 24.3 per cent decline in overall exports of which cotton textiles fell by 3.58 per cent, textiles and clothing by 5.71 per cent and garments by 12.02 per cent. Moreover, with the world trade undergoing certain structural changes, this has had a severe impact on Indian exports. There is a need for a slew of policy measures to bail out the ailing textile sector.
