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Indian Textiles: On a Buoyant Yardage
Author:  admin     PublishDate:  2007-08-23      Hit:  5303
The Indian Textiles Industry has an overwhelming presence in the economic life of the country.

Apart from providing one of the basic necessities of life, it also plays a pivotal role through its contribution to industrial output, employment generation and the export earnings of the country. The Textiles sector is the second largest provider of employment after agriculture.

Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation. Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP, and 16.63 percent to the country’s export earnings. It provides direct employment to over 35 million people, which include a substantial number of SC/ST and women.

The industry is now accelerating at an annual growth rate of 9-10 percent and is expected to grow at a rate of 16 percent in value terms and will reach the level of US $ 115 billion by 2012. The clothing and apparel sub-sector are expected to grow at a rate of 16 percent in volume terms and 21 percent in value terms, and textiles exports are expected to grow at a rate of 22 percent in value terms, by 2012.

The catalyst for this exponential growth is a buoyant domestic economy, substantial increase in cotton production, the conducive policy environment provided by the Government, and the expiration of the Multi Fibre Agreement on December 31, 2004.

Technology Mission on Cotton

The Government has initiated schemes which have facilitated the growth of the industry. The Technology Mission on Cotton has increased cotton production and reduced contamination levels. This industry consumes a diverse range of fibres and yarn, but is predominantly cotton based. A significant increase in cotton production during the last two-three years has increased the availability of raw cotton to the domestic textiles industry at competitive prices, providing it with a competitive edge in the global market.

The Technology Upgradation Fund Scheme has facilitated the installation of the state-of-the-art machinery at competitive capital cost, and the Scheme for Integrated Textiles Park was launched to neutralize the weakness of fragmentation of various sub-sectors of the textiles and non-availability of quality infrastructure. The rationalization of fiscal duties undertaken during the last three years has provided a level playing field in all segments of the industry, resulting in the holistic growth of the industry.

Increased Investment And Plan Allocation

Investment in the textiles sector in the past three years increased from Rs. 11,628.00 crore in 2004-05 to Rs. 31,000.00 in 2006-07. It is estimated that total investment in the textiles and clothing industry between financial years 2004-07 was around Rs. 64,478.00 crore. It is expected to reach Rs 1,50,600 crore by 2012. This enhanced investment will generate 17.37 million jobs by 2012.

In 2007-08, the plan allocation for Textiles has been enhanced by 66.27% over that of 2006-07. The Ministry of Textiles is one of only two Ministries that has seen such a high level of incremental budgetary support for its Annual Plan.

Exports

The Indian textiles industry is an export intensive industry, and about one third of its total production is exported in some form or the other. Through export friendly Government policies and positive efforts by the exporting community, textiles exports increased from US $ 12.45 billion in 2002-03 to US $ 17.85 billion in 2005-06, and are estimated at US$ 19.24 billion in 2006-07.

Exports of textiles and clothing, till 2004-05, had grown at a moderate pace. However, in 2005-06, they registered a sharp growth of 22%. This sharp rise in export was due to the elimination of trade quotas in the global textiles and clothing trade after over four decades of restrictions, w.e.f. January 1, 2005 coupled with an increased flow of funds to augment capacities in the entire textiles value chain, and favourable Government policies. Textile exports are expected to reach US $ 55 billion and attain a share of 7% in the global textiles trade by 2012.

Apparel and Clothing

The Clothing sector is an export intensive sub-sector and contributes about 40-45% to total textiles exports. It is a low investment and highly labour intensive industry : an investment of Rs.1.00 lakh in the sub-sector creates 6-8 jobs.

During the Tenth Five Year Plan, exports of readymade garments increased at the annualized rate of growth of 13.72%. Major change was witnessed in 2005-06, when it increased by 28 percent.

The investment requirement of this sub-sector by 2012 will be Rs.21,800.00 crore, and will create incremental employment for a 56.40 lakh workforce, of which 28.25 lakh will be semi-skilled, and 11.30 lakh un-skilled.

Scheme For Integrated Textiles Park (SITP)

Though the Indian textiles industry has its inherent advantages, infrastructure bottlenecks are a prime area of concern. With a view to take advantage of the post Multi Fibre Arrangement scenario, the Apparel Parks for Exports Schemes and the Textiles Centre Infrastructure Development Scheme were launched in 2002 to provide world class export infrastructure at important textiles centres. The objective of APES was to create exclusive export zones of apparel manufacturing. TCIDS was to modernize and fill in the gaps in the existing infrastructure at existing major textiles centres, to remove the impediments to production.

The performance of both Apparel Parks and TCIDS was restrained by the nature of assistance permitted. It was felt that there was a need to review both the schemes to examine the possibility for making provision for expeditious implementation of these schemes. Therefore, both the Schemes were subsumed into a new scheme called the ‘Scheme for Integrated Textile Park ’ in 2005. These parks would incorporate facilities for spinning, sizing, texturing, weaving, processing, apparels and embellishments. This scheme is based on the Public Private Partnership (PPP) model.

During the Tenth Five Year Plan, 30 projects were sanctioned: Andhra Pradesh (4), Gujarat (7), Maharashtra (6), Tamil Nadu (6), Rajasthan (4), Karnataka (1), Punjab (1) and West Bengal (1). These parks will be set up by 2008 with an additional investment of Rs. 15,434.60 crores. The Integrated Textile Park at Palladam, Tamil Nadu is nearing completion.

These parks will generate an annual production of Rs. 23,600.00 crores, and will create more than half a million new jobs. Additional textiles parks will be set up by 2012.

National Institute of Fashion Technology (NIFT)

NIFT was established by the Ministry of Textiles in 1986 as the apex body for HRD for the textiles, garment and allied sectors. NIFT has recently been given Statutory Status through an Act of Parliament for the promotion and development of education and research in Fashion Technology.

A new extension centre was inaugurated at Rae Bareli in Uttar Pradesh on February 13, 2007. The opening of new NIFT Centres at Patna and Mohali is under consideration.

Apparel Training and Design Centres (ATDC)

The Apparel Industry employs approximately 5 million workers, of which approximately 2.5 million are employed in the export sector. Thirteen Apparel Training and Design Centres (ATDC) are being run by the Apparel Export Promotion Council (AEPC). ATDCs have trained over 21,000 workers since inception. AEPC plans to set up 25 new centres in 13 States, and 13 mobile centres during the Eleventh Five Year Plan. These additional facilities will enable ATDCs to train 57,625 trainees in addition to 30,000 students being trained by existing ATDCs. Further, 15,000 students would be trained through mobile centres.

Jute

The Jute industry occupies an important place in the national economy. It is one of the major industries in the eastern region, particularly in West Bengal. Jute, the golden fibre, meets all the standards for ‘safe’ packaging in view of being a natural, renewable, biodegradable and eco-friendly product.

The Government has announced the first National Jute Policy on April 15, 2005, and as envisaged in the Policy, the Government on June 2, 2006, approved the implementation of the Jute Technology Mission (JTM) at an estimated cost of Rs.355.55 crore.

Sericulture and Silk Industry

Globally India is the second largest producer of silk and contributes about 18% to the total world raw silk production. India has the unique distinction of being endowed with all the four varieties of silk, namely, Mulberry, Eri, Tasar, and Muga. The sericulture and silk textiles sector provides employment to about 6 million people, mainly in rural areas.

Handlooms

Handlooms play a very important role in the country’s economy and provide direct or indirect employment to about 6.5 million people. The Government has ensured the availability of raw-material to handloom weavers through the Hank Yarn Obligation Order.

The production of fabric by this decentralized sub-sector has been on the upswing. In 2005-06, and in 2006-07, the production is estimated at 6,871 million sq. mtrs. For the first time a cluster approach was introduced in 2005-06 for the comprehensive and holistic development of selected handlooms clusters, and during 2007-08, 100-150 additional handlooms clusters will be taken up for development.

For the welfare of weavers in handlooms sector, Mahatma Gandhi Bunkar Bima Yojana was launched in 2005 to provide life insurance cover to weavers. Similarly, the Health Insurance Scheme was also launched in 2005 to provide health insurance coverage to the weaver, his/her spouse and two children.

Handloom Mark

The Handloom Mark was launched on June 28, 2006, by the Hon’ble Prime Minister, Dr. Manmohan Singh, to give a distinctive identity to handlooms products.

Handicrafts

Handicrafts represent the rich and diverse cultural heritage of the country. Its cultural importance pertains to ensuring the preservation of heritage, traditional skills and talent. The economic importance lies in the handicrafts high employment potential, low capital investment, high value addition and potential for export/ foreign exchange earnings.

The Sector provides employment to an estimated 63.81 lakhs artisans, of which 47.42% are female; 24.73% belong to Scheduled Castes, and 12.38% to Scheduled Tribes. Exports of Handicrafts and hand-made carpets has increased from Rs. 17,608.91 crores (US$ 3.98 billion) in 2005-06 to Rs. 20,963.00 crores (US$ 4.61 billion) in 2006-07.

India is the world leader in carpet exports with 36% of the global market share.

The Rajiv Gandhi Shilpi Swasthya Bima Yojana was introduced to provide health insurance coverage to artisans and their families.

The Government has reaffirmed its resolve to restructure and make the Textile sector competitive. The growth trajectory is now irreversible. Investment is increasing, textiles exports are on the rise, Plan allocations have increased, confirming the buoyancy of the sector.

Source: PIB
 
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