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PHDCCI calls for examining Chinese model for textile industry

PTI - New Delhi

The Indian textile industry should learn from the Chinese growth model while trying to adjust itself in the situation arising due to the phasing out of global quantitative restrictions on textiles, the PHD Chamber of Commerce and Industry has said.

“It is important to examine the Chinese growth model where the textile industry has emerged as a strong contender to India’s textile industry,” the PHDCCI president Mr P K Jain said in a statement.

The Indian textile industry would have to exercise due care in adopting modern technologies for forging new opportunities in the changing global markets, he said. The Indian industry still faces disadvantage of high power tariffs and rising cost of raw cotton, he said, adding that China has cost advantages in almost all factors of production.

The infrastructure facilities at the textile parks and special economic zones in China are world class, he said, adding China also offers special treatment to the industry by way of financial subsidies. Moreover, the Chinese government has invested on a large scale in infrastructure development leading to a reduction in overall costs. All major export centres in China are connected to ports with a network of elevated roads.

In order to compete with the quota-free regime, Mr Jain said, “India must take lessons from the Chinese model for reduction in costs and overcoming other constraints for strengthening its position in the international market”.

Mr H B Chaturvedi, chairman of the task force on textiles said government initiatives of sanctioning apparel parks and other infrastructure were not sufficient to fuel growth in this sector.