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Maran wants textile industry to diversify into new products
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Maran wants textile industry to diversify into new products
Terming the current export dip and flat domestic consumption plaguing the industry as a temporary atrophy to be surmounted by policy support and “facilitator” role from the Government, Mr Maran, sitting in his refurbished swanky room in Udyog Bhavan, told Business Line here said that this “legacy industry” has a rosy future. Provided, if it changes itself with the changing times and tastes of a big domestic market and lucrative export destinations and diversified textile products, particularly in new markets such as Japan and Australia.
Following are the excerpts from the interaction with Mr Maran:
On export growth: July to September are crucial months for Christmas orders and the third quarter will determine the future steps the Government has to take. The Textile Ministry has put up its demands to the Finance Ministry and the latter is also particular that the benefits enjoyed by the export industry should be restored to them. Fortunately or unfortunately, even if this segment gets all the incentives it wants, will it survive without diversification to new markets as the existing major ones like Europe and the US having been still not yet out of the demand dip? Sometimes it is better to put your eggs in various baskets.
Just in the IT industry when I was a Minister I invited foreign investors to come to India, manufacture here and sell in the domestic market, I will do the same in the Textile Ministry after the Budget by seeking foreign investments to bolster domestic manufacturing and sale in the domestic market besides exports to third countries through conscious efforts at brand-building.
On flexible labour policy: Whether it is flexible labour laws or contract labour laws as sought by the domestic garment industry, all that we want to make sure is that the industry does not exploit labour. We have to make sure of safeguards so that they do not use labour only for three months and dump them. People are more important. It is in the Constitution that as we evolve, as we progress, certain laws have to be changed to suit the changing times of India, without compromising the rights of the workers. We are talking with labour unions to provide safeguard measures which will protect both the sides.
On Chinese competition: China has a flexible fibre policy. Here cotton manufactures want cotton to be exported, yarn manufacturers want yarn to be exported, while garment manufacturers want neither to be exported but only garments and not any import substitution. When Hindustan Motors was dominant, only ambassadors and Fiats were plying but once the automobile sector was opened up, the consumer has baffling variety to choose from.
Our industry wants only financial package of Chinese size but turning a blind eye to what the Chinese industry has done. The domestic industry must get out of the groove. China is a manufacturer of Lycra, a synthetic fibre popular for its exceptional elasticity, whereas Indian industry is not. Because China manufactures this high-cost and high-return Lycra, it is able to compete in the global production of sanitary pads and diapers while Indian textile industry is not into these lucrative demand segments. It should also get into medical textiles and disposables to stay competitive and robust.
On National Fibre Policy: In India, the cotton cloth is cheaper but man-made cloth is expensive, whereas the world over the trend is the opposite. If you want to compete in the international arena, where is China and where are we? Are we manufacturing Lycra? We have to import from China while everywhere it is Lycra. Because, you (the industry) don’t do anything. Is it not time we also get aggressive on this front?
Source:
http://www.thehindubusinessline.com/2009/06/26/stories/2009062652011500.htm