Question

why the demand of Indian textile could not reduce

Answer 1



OPINION

Why textiles has failed to perform

MANIKAM RAMASWAMI Updated on March 09, 2018

 

 

 

Export incentives for cotton and yarn should favour domestic value-adding companies, rather than competitors across the border.

Export policy errors and a non-competitive knitwear industry have impacted the sector's performance.

The textile industry, as per its vision document, was poised to achieve $100-billion turnover, contribute $50 billion to India's exports, and increase its employment from 3.5 crore by at least 1 crore. That has not happened, despite a slew of incentives.

The government has provided the industry with more than Rs 10,000 crore for TUF (technology upgradation fund) interest subsidy so far, and is to provide an equivalent amount in future. It has also created 42 textile parks by spending Rs 1500 crore, though with questionable success. Deferred loan repayments in the past have cost the taxpayer more than Rs 2000 crore. Yet the textile industry has created just 25 lakh extra jobs, and reached only $18 billion in exports.

Where did the textile industry go wrong, in spite of spinning and grey-fabric manufacturing capacities being the most competitive ones globally? Why has it not achieved its own targets, despite the government keeping up its part of the bargain?