The Southern India Mills Association (SIMA) and the Cotton Development and Research Association have called for steps to help the textile sector meet the challenges. Making the Indian textile sector more competitive in the global market will enable it to raise its turnover from the current $110 billion to $500 billion in a decade, they said in a joint memorandum presented to Union Minister of State for Commerce and Industry Nirmala Seetharaman on Friday. The steps include immediate disbursement of money under the Technology Upgradation Fund (TUF) scheme and three percent interest subvention for textile products. The textile industry started facing problems from the end of 2013 as competing countries like Bangladesh, Pakistan, South Korea, Vietnam and Cambodia benefit more by the open-window market access. “As a result, we are facing unhealthy competition in the world market though we have achie ved a very high degree of manufacturing competitiveness. At a time like this, the undue delay in disbursing funds under TUF scheme has put the entire industry in the country under severe financial stress,” SIMA chairman C K Narayanasaami said in the memorandum. The Centre should also provide three percent interest subvention for textile products as the interest rate in the competing countries is much less than in India. Besides, the Central excise duty should be reduced from 12.5 percent to 6 percent. Another demand is exemption from terminal excise duty for domestic capital goods under the Export Promotion Capital Goods (EPCG) scheme.
