New textile policy soon

The Union textile ministry is expected to finalise a national policy in the coming month and has held meetings in Delhi and Mumbai. It is being synchronised with the manufacturing policy.

The previous United Progressive Alliance government had put a draft for discussion. The present National Democratic Alliance government has reintroduced the draft and decided to finalise it soon.

The draft vision paper, given to the ministry in July, aims at bringing investment of $120 billion, so the sector can achieve $650-billion growth by 2024-25. Also, the sector needs 35 million workers to achieve the growth target.

"This document, if converted into policy, will be a game-changer for the apparel sector. For the first time, the government has recognised the importance of the domestic sector, and that apparel is the apex sector which must be encouraged," Rahul Mehta, president of Clothing Manufacturers Association of India, said.  

Minister Santosh Kumar Gangwar has called a meeting of stakeholders by the end of this month to finalise the policy. Cotton production in the country has been on the rise. A favourable textile policy will be important to create a market for the produce, specially when the Chinese demand for cotton is declining.

In a meeting with stakeholders last week, ministry officials emphasised the need to increase the foreign direct investment (FDI) in the sector. They also said start-ups should be given importance. According to officials, there was a need to push FDI in the Indian retail sector, as it would help Indian brands grow and enhance their visibility at the global level. The ministry aims to make India a net exporter of finished products.

The government launched the technology upgradation fund scheme to spur growth in the sector. But the government discontinued it after cotton prices went through the roof a couple of years ago.

At present, the ministry is not keen to make benefits of the scheme available for second-hand machinery. But the scheme could be extended to cotton ginning and pressing units. The draft policy talks about promoting the latest technology.