Textile tech fund on the anvil

Inaugurating a three-day India International Garment Fair here, he said the textiles ministry hoped to launch the fund during the Ninth Plan.

The seminar has been organised by the Apparel Export Promotion Council (AEPC) in collaboration with the four leading garment exporting associations.

Over 175 leading garment exporting companies are participating in the fair, in addition to around 1,000 foreign companies which are due to take part part in it.

Kumar said prime minister I K Gujral had also accepted, in-principle, a proposal to adopt a technology mission approach to cultivating and marketing of cotton, while interacting with representatives of apex chambers of commerce and industry, exporting community here on June 26.

Noting the reduction in the customs duty on various types of sophisticated weaving and processing machineries, the textiles secretary wanted that these to be brought down to the "minimum" possible level.

Noting that garment exports, which were around $1 million in 1997-78 had reached a level of about $5 billion in 1996-97, he said it was no mean achievement.

But despite this, India’s share of textiles and clothing in world exports had been quite stagnant in the past two decades. It was a challenge to the industry, government and exporters to face the situation, especially when there were quota restrictions imposed by developed importing countries, Kumar cautioned.

Earlier, AEPC chairman K L Madan urged the government to adopt a positive policy to help achieve an export target of $5.25 billion for 1997-98, taking into account the decline in the export growth in the first-half.

Though the first-half saw a decrease in value terms compared to the same period last year, the industry had the potential to earn foreign exchange to the tune of $15 billion provided exports of synthetic garments were stepped up, Madan stated.

With only 90 months for the phase-out of the Multi-Fibre Arrangement (MFA),the challenges facing the industry are multiple in nature and stiff competition is expected from Taiwan, Korea, Thailand and China.

AEPC, he said, had suggested certain major issues which would help boost garment exports such as giving benefit of deemed exports, including 80-HHC, to mills for supply of finished and processed fabrics to garment exporters.

In the meantime, India has asked the European Commission (EC) to resolve the anti-dumping issue relating to exports of unbleached cotton grey fabrics (UCF) through mutual talks and not by taking recourse to anti-dumping procedures.

“We have already told the European Union (EU) that there is no point in starting the investigations again. We may be able to discuss and thrash the issue out,” Commerce Minister Ramaiah told PTI.The minister’s statement assumes significance in the light of the EC initiating fresh investigations on charges of dumping of unbleached cotton fabrics (UCF).