‘Don’t fear China, invest in domestic market’

A senior textile ministry official has urged the textile manufacturers to shed the China fixation and capitalise on the growing domestic market and develop it further.

“Everyone is worried about competition from China in the export market after 2008 in the post quota scenario. Textile manufacturers should not just look at export markets for growth. Our robust domestic market offers enough growth opportunities,” the joint textile commissioner Ms Shashi Singh said.

She said, “The total size of India’s textile market was US$ 36 billion with the projected size by 2010 being US$ 85 billion. Of this, our total exports were US$ 13 billion, while the projected exports by 2010 would be US$ 50 billion”.

“Apart from this, the domestic market has been growing at a rate of eight per cent. This growth will get a further push from the growing organised retail market which has a three per cent share in the US$ 330 billion retail market. This share is likely to grow at 20-25 per cent in the coming years,” she said

“This gives an ideal cushion for textile manufacturers to fall back upon. So they should stop worrying about Chinese competition, rather use this opportunity to strengthen their hold on the domestic market even further, especially with the likes of Pakistan and China vying for the Indian market,” she said. She further stated that the ideal way for the textile manufacturers to consolidate their position in the Indian market was by availing the various schemes being offered by the government. “We have numerous schemes running for the development of the textile industry.

The most important of them all is the technological upgradation fund scheme (TUFS),” Ms Singh said. With the scheme’s expiry due in March 31, 2007 she urged manufacturers to make the most of it. “Even if the scheme is not renewed further, those who have already applied would continue to get benefitted as any project sanctioned upto March 31, 2007 will be entitled for the benefits of the project,” she said. Apart from this the ministry is also planning to include the manmade synthetic fibre under the TUFS. “Manmade fibres are produced the most. In 2003 its total production was 12,355 million metres valuing Rs 77,523 crore. Today only manufacturing of manmade fibre and yarn is not included under the scheme,” she said. “We have submitted a proposal to the finance ministry to include this sector under the TUFS. We are also planning to reduce the duties in this sector by 50 per cent from the current 16 per cent. These steps will assist in the future growth of the market,” Ms Singh stated.