12 Per Cent Textile Export Growth In 9th Plan Projected

The ninth plan working group on textiles has projected an average annual growth of 12 per cent in textile exports over the next five years. In value terms, the total export of textiles, including clothing, handicrafts, jute and coir, is expected to be $20.17 billion in 2001-2002, the terminal year of the ninth plan.

If the projected exports figure is achieved, it will be a sharp increase over the $11.75 billion worth of exports achieved in 1996-97 which was the last year of the eight plan period. More so, because export of textiles will continue to be affected by quota restrictions over the next five years, the working group said.

The recommendations made by the working group headed by textile secretary Prabhat Kumar are as follows:

A drastic reduction in the import duties on capital goods to enable textile companies to undertake upgradation and modernisation programmes.

Availability of concessional finance for mill modernisation programmes.

A technology mission for enhancing the production of cotton and export of cotton textiles.

The government should create a fast-track environment to promote foreign collaboration in the clothing sector.

The restrictive approach on the export of cotton yarn be continued for some more time.

Availability of synthetic fibres and yarns be enhanced through rationalisation of import and excise duty structures in order to free cotton for use in exportable goods.

Process houses should be extended benefit of deemed exports. Incentives like tax benefit on the basis of accelerated depreciation of equipment and concessional finance should be made available to processing units.

Design inputs should be upg- raded to make handloom goods attractive.

Installation of the computer aided design (CAD) system and interaction with International designers

The environment friendly segment of the market needs to be addressed through trade in textiles with vegetable dyes. Adequate research production of vegetable dyes and standardisation of dyeing properties need to be ensured.

Polyester staple fibre should be struck off the list of sensitive items for imports.

Additional wool grading and testing facilities should be set up.

Import of garment machinery needs to be brought down in order to encourage state-of-art manufacturing facilities for the machines in the country.

Deemed export benefit should be accorded to suppliers of local fabrics for manufacture of clothing for exports.