India's 2010 global textile ambition may remain a dream, says ASSOCHAM
30 Aug '05
4 min read
"In addition, not much of funds are being made available to accelerate our domestic textile exports. In such a scenario, the targeted exports of Indian textile will naturally fall to US$ 35 billion," said the ASSOCHAM Chief.
Bottlenecks and bureaucratic hassles continue to prevail for exporters at various Ports on account of very limited space availability which will continue because ports not being restructured and therefore continue to keep their capacity utilisation under heavy pressure to affect our export consignments, says the ASSOCHAM Paper.
Cumbersome procedures at customs go on and authorities most of the times do not take cognizance of the difficulties that the exporters face particularly in textile sector.
The ASSOCHAM Paper therefore suggests that if India wishes to achieve the projected potential, it will have to introduce reforms in the textile economy in order to attract FDI in this sector, which has spurred spectacular growth in China's apparel-export industry.
The government should also eliminate restrictions that cause poor operational and organisation performance of manufacturers and discourage investment particularly FDI.
Flexibility in labour laws is urgently called for in the changed economic, commercial and fiscal regime. Amendments are also required to help free outsourcing to promote investment in labour-intensive and export-oriented garment sector.
Contract labour norms should be liberalised for textiles and garments so that units can hire labourers for a few months without the compulsion of having to absorb them permanently.
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