Don't think small, spin a global yarn

The national textile policy has to be fibre neutral; it has to promote large-scale production, remove remaining textile items from the SSI list and introduce more flexible labour laws to take on the challenge of the post-quota regime.

Giving a direction to the national policy, the survey emphasised the need to reduce “disincentives� for factory production in the textile sector. It cautioned industry against a fall in prices due to increased competition and suggested improved efficiency and productivity.

Stating that the domestic textile sector has a “natural competitive advantage� in terms of a strong multi-fibre base, cheap skilled labour, and a presence across the entire textile value chain (from fibre to fashion), the survey said: “Low labour cost benefits tend to get neutralised by high infrastructure expenses.�

Pointing out India’s readiness to face global challenge through policy initiatives, it said: “The evidence on substantial improvement in the performance of the textile sector, however, remain sketchy as yet.�

After registering a growth rate of 8.5% in 1999-2000, fabric production remained at a 2.6% and 4.5% clip in the next two years and fell by 0.1% in 2002-03.

Fabric production increased only marginally by about 1% in 2003-04, it said.