''Textile industry has backing of the Govt''

MUMBAI: The industry would get full support and backing from the ministry when it came to issues that impacted it said Shankersinh Vaghela, hon'ble minister for textiles, Ministry of Textiles, Government of India said at at Confederation of Indian Industry's textile summit, ConText 2006: "India Textile Inc. - The Business of Textiles".

In his address, Vaghela said, "The government's stance is to do everything that would enable Indian industry to compete successfully in terms of Global Competition."

He urged the industry to stop worrying about what China was doing in the global scenario, and instead, focus on what the Indian textile and garment industry could do better. Where a shortfall or gap existed, he said he would rather ask the industry look at it as an opportunity and a challenge rather than a negative point. "It is not just the Global market, the industry has opportunities and challenges in the domestic market as well," he pointed out.

Speaking of the year 2010 being the target year to increase production, market share as also exports, he said the ministry would not be found lacking when it came to incentives and initiatives. "The textile parks and technology missions have been positive where the industry is concerned," he said.

In a small example of how the textile industry had made the changeover from a 'sunset' industry to a 'sunrise' industry, the Vaghela gave the example of removal of CenVat, for which a section of the industry had agitated. He pointed out that he had personally supported the industry's demand, in effect; overruling what the bureaucrats said and ensured that the Finance Minister provided the necessary tax benefits. He termed this as the true essence of democracy, where industry's requirement was given prominence. He concluded by saying he had hopes for far better performance from a re-vitalized Indian textile and garment industry.

Qaiser Shamim, joint secretary, ministry of textiles, Government of India spoke of the new era that the industry had entered, one where the quota regime was a thing of the past.

It was an exciting time, he said, quoting a CRISIL study which suggested better days ahead for the industry with faster growth rates, a larger share of the global market and better profitability. "The Indian textile and apparel industry is moving from 'sunset' to 'sunrise'," he pointed out.

Stressing on the role of Government as a facilitator in the entire process, the Joint Secretary said government was committed to help the industry compete more effectively in the global market. He spoke of duty rationalization, as an example towards this. Terming FDI as advantageous to the industry, Shamim pointed out that the ministry had set up a dedicated cell to promote FDI in the textile sector. He concluded by saying he hoped the industry would continue to grow at a high rate and achieve its targets.

C S Gokhale chairman - CII ConText 2006 and president, corporate development, Reliance Industries spoke of the strong raw material base that the Indian textile and garment industry enjoyed. He gave statistics to show the importance of textiles in the Indian economy, adding that exports valued at US $ 20 billion were without any major import component. "The moot point is whether the Indian textile industry has realized its potential?" he asked. The need was to ensure India took its rightful place in the Global scenario. He concluded by saying that trade agreements were huge opportunities.

CIOL Bureau