UP industry demands textile policy

Textile export from the state estimated at Rs 4,000 cr.

The textile industry has urged the Uttar Pradesh government to formulate a separate policy to give a fillip to the sector, especially in the light of the current economic downturn.

In fact, the textile policy issue has been hanging fire for the last several years. The state government is currently busy with the industrial policy for the next five years.

Till now, textile was covered under the general state industrial policy, but now the industry feels it is time they had a separate policy since it provides employment to millions of people, especially in rural areas.

“The annual textile export from UP is estimated at about Rs 4,000 crore, including almost Rs 1,000 crore worth of indirect export,” UP Export Promotion Bureau joint commissioner Prabhat Kumar told Business Standard.

The industry feels textile has a huge growth potential, since the sector is on the decline in western countries, which now depend more on countries in the Asian region. “There is scope for further growth provided favourable conditions are created,” PHD Chamber of Commerce resident director Brig (retd) Amitabha said.

He maintained that the textile policy was imperative for industrial development of the state and employment generation. “The policy should provide for exclusive tax-exempted parks for textile and clothing sectors, interest subsidy for establishing new enterprises and for diversification and modernisation of existing units,” he added.

Besides, the industry feels technology upgradation in textile, quality-control, strategising export and innovative marketing and training institutes would complete the circle for the sector.

In a recent meeting with Infrastructure and Industrial Development Commissioner VK Sharma and other senior industry department officials, PHDCC submitted its recommendations for the textile sector, including the textile policy.

“Considering the potential, both in terms of investment and employment generation, UP should consider promoting the entire textile value chain from farm, fibre, fabric to fashion and foreign trade. The government should identify sub sectors like cotton spinning, knitting and new areas like technical and industrial textile in its policy to achieve higher value addition,” Brig Amitabha added.

In December 2005, the state government had asked the Northern India Textile Research Association (Nitra) to prepare the textile policy. NITRA submitted the document in the form of draft UP Textile Policy 2006-11 subsequently.

Last year, then state principal secretary, SSI, export promotion and textiles, V Rajagopalan met textile industrialists, garment manufacturers and exporters to seek the industry opinion before finalising the revised draft textile policy. However, nothing has materialised so far.