Question : NEW TEXTILE POLICY



(a) whether the Government have framed a new Textile Policy in view of the agreement signed at WTO;

(b) if so, the details thereof; and

(c) the extent to which the above new policy takes care of the interests of the Indian Textile Industry and other related textile industries ?

Answer given by the minister

MINISTER OF TEXTILES (SHRI KASHIRAM RANA)

(a) to (c) A statement is laid on the Table of the House.

Statement referred to in reply to Lok Sabha Starred Question No.61 for answer on 21.2.2003 regarding New Textile Policy .

(a) The National Textile Policy-2000 was enunciated, taking note, inter-alia, of the new challenges and opportunities presented by the changing global environment, particularly the initiation of the process of gradual phasing out of quantitative restrictions on imports and the lowering of tariff levels for integration with the world textiles and clothing market by end 2004.

(b) & (c) The Policy aims at developing a strong and vibrant textile industry capable of producing cloth of good quality at acceptable prices, contributing increasingly to the provision of sustainable employment and economic growth, and competing with confidence for an increasing share of the global market. Its major objectives include -

- To equip the industry to withstand pressures of import penetration and maintain a dominant presence in the domestic market;

- To liberalise controls and regulations so that the different segments of the textile industry are enabled to perform in a greater competitive environment;

- To enable the industry to build world class state-of-the-art manufacturing capabilities in conformity with environmental standards, and for this purpose to encourage both Foreign Direct Investment as well as research and development in the sector;

- To sustain and strengthen the traditional knowledge, skills and capabilities of our weavers and craftspeople;

- To expand productive employment by enabling the growth of the industry, with particular effort directed to enhancing the benefits to the north east region.

The targets asked for endeavour inter-alia to -
- Achieve the target of textile and apparel exports from the present level of US $50 billion by 2010 of which the share of garments will be US$25 billion;
- Implement vigorously, in a time bound manner, the Technology Upgradation Fund Scheme (TUFS) covering all manufacturing segments of the industry;
- Achieve increase in cotton productivity by at least 50% and upgrade its quality to international standards, through effective implementation of the Technology Mission on Cotton;
- Encourage the private sector to set up world class, environment friendly, integrated textile complexes and textile processing units in different parts of the country;
- De-reserve the garment industry from the Small Scale Industry Sector.

Within this framework, sector specific policy guidelines covering all major commodities, and sectors and segments of the organized and decentralized textile industry were laid down.

It is considering that the Policy provides a conducive environment to the entire textile industry to realize to full potential, achieve global excellence and fulfil its obligations to different sectors of the society.