Textile Minister Vaghela advices weavers to diversify
19 Nov '05
2 min read
Following the reports of suicide committed by handloom weavers in Varanasi and Andhra Pradesh, Textiles Minister Shankarsinh Vaghela has advised the weaving community that it would be difficult to survive without diversification.
Mentioning policies and steps taken to bolster the industry in the last one year at the Economic Editors' Conference, Vaghela admitted that since handloom segment would not compete with powerloom, it has to diversify and target the nich market.
The ministry has designed several plans to promote the handloom segment, but it has to continuously improve and modernize itself.
With an excellent export potential in handloom-woven fabrics, the industry should target global market, he said. The contribution of handlooms in total cloth production in the country has plunged to 9 per cent from 20 per cent two decades ago.
Vaghela emphasized India's progress towards securing a larger share in the international market by pointing out import statistics for EU and US, which indicate 14.7 per cent and 26.49 per cent growth during Jan to Aug.
During the same period, US market grew by just 9 percent while market in EU plunged by 3 percent, he said.
In the next two year, India would raise its share in the global market following quotas being imposed on china, said Vaghela.
The progress of Textile Upgradation Fund Scheme (TUFS) mentions that the modernization of the industry has been vigorous.
The minister also threw light on the latest Scheme for Integrated Textile Parks that was formed with the merger of the Textile Centre Infrastructure Development Scheme and the Apparel Park Scheme.
The ministry plans to set up 25 textile parks by 2007-08; the ministry would organize these parks through special purpose vehicles at the field level. The government would grant as much as 40 percent of the project cost or Rs 40 crore, whichever would be lower, he said.
He also revealed that finance for this plan had been increased considerably from Rs 878 crore in 2004-05 to Rs 1150 crore in 2005-06.
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