1 crore investment in Textile sector to lead to 70 jobs, 5 crore revenue – CII Wazir Report
MoU signed between Technological University of Tajikistan and North India Textile Research Association in Textiles Development at CII Texcon
A Report on How to enable “Make in India Possible in Textile and Apparel sector, released by Confederation of Indian Industry (CII) and Wazir Advisors at the CII Texcon 2015 here in the national capital today, has strongly called for huge thrust required on the part of the Government to aggressively enter into as many Free Trade Agreements (FTAs) as possible with select textile markets in Asia and European Union to safe guard the Indian textile and apparel industry and set off the negative impact of the recently negotiated Trans-Pacific Partnership (TPP) between USA and 11 other Asia-Pacific countries (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam).
“The TPP is a trade agreement that will open markets, and enable countries like Vietnam a zero-duty access to the US market for textiles, while Indian players will have to pay 14-32% duties, which will make them uncompetitive. It would have been much better had India too joined the TPP”, the CII Wazir report highlighted.
“The TPP will adversely impact the Indian textiles industry because of the yarn forward provision which requires the yarn and fabric used in final product to be manufactured in one of the free trade partners to qualify for duty-free treatment under the trade pact. At present, India exports yarn and fabric to Vietnam which then exports the finished products to countries like the US. Now, with the yarn forward provision in the TPP, they will have to either source it from some other free partner country or produce domestically, hurting India’s exports adversely”, shared Mr Sachit Jain, Vice Chairman, CII National Committee on Textiles and Executive Director Vardhman Textiles Ltd.
“India should take all possible steps to join the APEC forum, which accounts for nearly 60% of global GDP. This would provide a pathway for greater integration into the region’s economy”, he added.
“India is quite competitive in textile and with massive costs increases in China, Indonesia, Thailand, Philipinnes in labour and power we have a historic opportunity to build a thriving textile industry and be a catalyst for job creation. One crore invested in textiles leads to 70 direct jobs and 5 Crore of Revenue. Hence it can be the cornerstone of the new government’s policy of increasing share of manufacturing in GDP to 25 % and be the key driver of Make in India. It is however important that India eases the labour laws and creates an enabling infrastructure”, highlighted Mr Prashant Agarwal, Joint Managing Director, Wazir Advisors Pvt. Ltd.
The report also highlighted that “Owing to rising costs in China by three times in the last 7 years, India can easily tap a major chunk from China which holds 40 % of world’s total textile and apparel market share. India can increase its share in Apparel from 60 Billion USD to 200 Billion USD out of a total global market size of 800 Billion USD by 2025. But India will have to reduce the finance cost and ease the land & environment clearances, focus on economies of scale, infrastructure, skill development, technology development and brand promotion”.
An Memorandum of Understanding (MoU) was entered between Technological University of Tajikistan (TUT) and Northern India Textile Research Association (NITRA) on the sidelines of CII Texcon 2015 to impart training and skill development as also setting up of skill development centres for core textile mills across Tajikistan. As per the MoU, the knowledge and expertise of Indian Textile research professionals and industrialists will be shared with their counterparts in Tajikistan via NITRA which is recognized by the Ministry of Textiles, GoI. A 13 member Tajikistan industry delegation also attended CII Texcon.
Mr Sunil Porwal, Additional Chief Secretary (Textile) - Co-operative, Marketing and Textiles Department Government of Maharashtra shared that “We have planned to open 8 more textile and apparel mega parks in cotyon belts like Beed, Jalgaon, Aurangabad, Buldhama, Apola, Parbohani, Jalna etc to boost textile exports. The pre-approved land banks would be earmarked by the end of November 2015. This is in addition to a mega park of 500 hectare already initiated by us in Amravati. We are offering interest subvention subsidy on machinery from 20 – 25 %. We are also committed to put in proper affluent treatment plants along with these parks so as to protect the environment.
“The strength of Indian textile industry lies in the ginning and spinning, and there is a need to focus on weaving and processing sectors. Also there is a need to give more thrust on the garment industry as it is a labour intensive industry providing more employment opportunities. The major issue of the textile industry is unavailability of skilled labour and for this the CII and governments are working together by setting up the skill development centres and centres of excellence”, shared Mr Y C Gupta, Co-Chairman, CII Texcon 2015 & Business Head Indorama Industries Ltd.
New Delhi
15 October, 2015