However, President Kiran Saakha told us that it was difficult to predict whether duty free access will attract investment in the sector. He said, “Industry should develop garment Processing Zones which will help to bring down the production cost and help in competing with other countries. This will boost growth, which eventually will bring in funds and financial support for the country.”
As for improving and upgrading the supply of yarn and textile raw materials, Kiran said, “It is like chicken first or egg first. Improvement for the backward linkages was needed, as presently businesses preferred to take their proposals to other countries and not LDC's. Approval of this duty free proposal was vital. However, it should be executed when the countries reach the level to implement 2nd stage or 3rd stage norms.”
Regarding funds to enhance overall textile industry, Kiran assured, “We are regularly contacting IMF, World Bank and Asian Development Bank for the financial aids. These proposals have not yet seen any progress.”
Fibre2fashion, News Desk - India
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