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Indian textile industry on comeback trail: Fitch ratings
Agencies - Mumbai
Fitch ratings has said fundamentals of the Indian textiles industry are changing
and the sector seems to be on a comeback trail, aided by government policies
and buoyant exports in 2002-03, even as it asked them to achieve competitive
strength to survive in global environment.
“There is a conscious effort to expand and modernise, key to achieving
economies of scale and becoming internationally competitive. With competitiveness
of organised sector being restored and terms of world trade in textiles shifting
in India’s favour, the sector has started attracting investments”,
Fitch said in its report released here recently. Fitch ratings director Mr R
Jayakumar said though late, the government has recognised that the emerging
global challenges cannot be met on the strength of the decentralised sector.
“There is an increasing realisation among policy makers for the need to
make organised industry competitive and the need to channel large investments
into the industry”, he said. The last three Union budgets have reflected
a change in mindset aimed at addressing the structural anomalies in the industry,
he added. Fitch said there was a need for further reforms to correct the distortions
caused by duty structure and the labour laws, and investments still need to
be made in weaving and processing.
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