The Government can only ill-efford to delay announcement of a relief package for the immediate revival of the ailing textile industry. This viewpoint was reportedly endorsed by the Textile Minister, Dr. K.S. Rao, at his first-ever interaction with the industry representatives immediately after his assumption of office. Yes, the textile sector is by far the largest exporter with a whopping 17 per cent share in the country’s overall exchange earnings. It contributes almost 14 per cent to industrial production and, being the second largest employment provider, next only to agriculture, offers direct employment to 35 million people. Further, the Prime Minister’s five-pronged development strategy to boost key manufacturing sectors has its special focus on textiles.
It is against this backdrop that industry experts aver that if the current domestic and overseas demand potential is fully tapped, the textile sector will be worth $220 billion by 2020. This has been further confirmed by the emerging opportunities for the industry with the growing economic instability in countries like Bangladesh and higher demand for cotton yarn and fabrics from China.
Fully realising the urgent need to restore the textile industry to health, Dr. Rao accorded top priority for technology upgradation. Concerned over the undue delay in submission of subsidy claims by mills, he called for online monitoring by banks of all TUFS cases to ensure that there are no subsidy claims pending with the Ministry. He also expressed the hope that, with timely fiscal and financial support to the industry, textile production and exports, currently estimated at $85 billion and $35 billion respectively, can be easily doubled. The other major deterrents discussed included widespread power shortage and fluctuations in cotton and yarn prices, resulting in severe under-utilisation of capacity among mills. There was persistent demand for capital investment subsidy for installation of solar projects to tackle the power crisis and an adequate provision of funds at four per cent interest subvention to buy cotton at the beginning of the season to guard against supply uncertainties. Though assured that the Government would analyse in detail its demands for immediate relief and take a favourable decision sooner than later, the industry remains sceptical of the likely policy delay affecting its very survival.