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WTO related issues to be high on agenda

Umbrella association targets single 2004-05 pre-budget memorandum from textile industry

The Association of Synthetic Fibre Industry (ASFI), which has taken the lead in forming an umbrella organisation of the various textile bodies, has set as its first target the submission of a single pre-budget memorandum from the entire textile industry to the Union textiles ministry for 2004-05. The association in its next meeting, scheduled on September 11, will appoint a steering committee comprising of five to six experts from the industry, to work on the details of the formation of the confederation, objectives, functions, etc. It is expected that within the next two months the structure of this body would be finalised.

Speaking to Express Textile, Mr C S Gokhale, president, corporate development, Reliance Industries, said, "In all these years of my close association with the industry, it is only in the last one year that I have seen a lot of open discussion between the various sectors of the industry, and the willingness to come onto a common platform. The industry realises that to compete in the liberalised and globalised world economy, it needs to put up a united front, each sector competing with the other in the global market will nullify the strengths of the Indian textile industry. And the purpose of this confederation will be to facilitate WTO, and to help the industry comply with various WTO rules and regulations, etc."

Work on ‘Confederation of Indian Textile Industry (CITI)’ had already begun some years back, with associations like the Federation of Indian Art Silk Weaving Industry (FIASWI), Indian Cotton Mills Federation (ICMF), Indian Spinners’ Association (ISA), etc taking a lead. However, work on CITI had not progressed much. "We then decided to take this up aggressively, and it is very encouraging to see the response from diverse sectors, including the garment sector," said Mr Gokhale.

However, according to experts, an umbrella organisation is a workable concept in Taiwan and some other countries which have strongly integrated industries, this may not necessarily be so in India, where each sector has its own interests to protect. According to Mr Gokhale, "Each association will be allowed to maintain its own identity. And the confederation, if it is able to achieve a 70-80 per cent consensus on various issues, will be successful. And each association will have its own agenda, which it would be free to take up on its own. The question is about a common minimum agenda, and I believe that this will be achievable." Sources also feel that there are not too many differences (fiscal, etc) left between sectors, with the government rationalising the tax structures every year.

Experts also believe that not only the domestic associations, but the export promotion councils, and TRAs should also become part of the confederation, for it to become truly representative of the industry. Says Mr Gokhale, "The confederation would be open to all textile bodies, big and small, and to those representing various aspects of textile manufacturing and trading." It is also felt that the objectives and functions of the confederation would need to be chalked out carefully. Sources point out that the main aim of this organisation would be to help all sectors of the industry, organised and decentralised, to compete in the WTO regime. "Not all sectors may be in a position to fight anti-dumping, anti-subsidy, and other such investigations, which will become very common post-2004. The confederation would take up such cases for its various members. Apart from this, there would be the common minimum agenda that the confederation would work towards," informed sources.