· 10% Capital Subsidy Scheme for the textile processing sector.
· Import duty on all textile machinery reduced to 10% from 20% earlier.
· Investment target in textile industry for 2005-06 raised to US$ 30 billion against actual investment of US$ 20 billion during 2004-05
· 30 textile items, including Knitting, de-reserved from Small Scale Industry list
· Focus on creating manufacturing competitiveness to improve small scale and medium scale industries.
A timely debut
The 40-year-old MFA regime that regulated trade in textiles and apparel through a quota system came to an end on 1st January 2005. Countries that over the years built up a strong manufacturing base and continue to have a competitive environment stand to gain tremendously from the dismantling of the quota regime. Post-quota, focus is now shifting to Asia where China and India are emerging as the major players.
The region of South Asia in particular, consisting of India, Sri Lanka, Bangladesh, Pakistan, Nepal, and Mauritius, is brimming with potential for growth in apparel manufacturing and exports. This is reflected in the aspirations of just one country, India, whose textile and apparel industry is targeted to reach exports worth US$ 50 billion by the year 2010.
The South-Asia region as a whole can emerge as a US$ 80 billion market. Add to this India's domestic market for apparel, which is currently estimated at US$ 9 billion and projected to grow to US$ 22 billion by 2010, and we have a US$ 100 billion+ market!
marketing@alchempro.com
