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HIGHLIGHTS
INTRODUCTION
The Textile Industry is unique for being entirely self-reliant. From growing its raw material to reaching a highly value added product to the consumer, it is in the position to contribute to the whole range of activities significant to the economy of the country. At present it adds 14% to industrial production and 35% to the country’s export earnings, with less than 2% share in the gross import bill. It has immense potential for employment generation for the weaker sections including SC/ST and women in the rural areas providing jobs to agriculturists, weavers, artisians and technicians in the organised as well as decentralised and household sector. The industry has a wide sectoral dispersal and it uses a variety of fibres, natural as well as man-made and synthetic, and blends of one or more fibres. The production of textiles involves ginning, reeling, spinning, weaving, processing and garment manufacturing. The fundamentals of the textile industry remain strong. Despite an obsolescence of infrastructure, it has shown remarkable resilience to various vissititudes grown in terms of installed spindleage, yarn production and output of cloth. The spindleage capacity has increased from about 28.60 million in 1993-94 to 34.90 million by the end of November‘99. A notable feature in this growth process has been the installation of a large number of open end rotors in the 1990s and the trend of setting up 100% Export Oriented Units in the field of spinning. The production of spun yarn is anticipated to touch the figure of 3,020 mn. kgs. during current financial year and achieve an annual growth of 6.5% for the last five years. It is worth noting that the production of blended yarn and 100% non-cotton yarn has shown an upward trend in recent years. The production of blended yarn is anticipated to touch the figure of 609 million kg during 1999-2000, registering an annual growth of 12% during the last five years. The production of 100% non-cotton yarn is anticipated to touch the figure of 206 mn. kg. during 1999-2000, registering an annual growth of 5.5 % during the last five years. The total production of cloth by all sectors, i.e. mill, powerloom, handloom, khadi, wool and silk has also shown an up trend in recent years. The total production of cloth is anticipated to touch the figure of 38,434 mn. sq. mtrs. during 1999-2000, showing an annual growth of 6.1% during the last five years. The cloth production from the decentralised hosiery sector has shown significantly higher annual growth rate of 12% during the last five years. The significant growth
in textile industry so far has led to an increase in per capita domestic
availability of cloth in the country, despite the growth in population
and exports. The per capita availability has risen to about 30.55 sq. mtrs.
in 1999-2000 (provisional) from around 26.22 sq. mtrs. in 1993-94.
NEW INITIATIVES The textile industry
will have to improve certain areas of weaknesses and enhance its competitive
strength to retain and improve its position in the textile map of the world,
particularly in the context of emerging liberalisation and globalisation
of textile products and trade. This calls for bold initiatives on the part
of the industry and the Government, particularly in areas such as upgradation
of technology, improvement in productivity and availability of raw materials,
enhancement of quality of products, incorporation of Information Technology
(IT) for improving design and enlarging business and commerce. Accordingly,
major initiatives were launched during the year.
TECHNOLOGY UPGRADATION FUND SCHEME (TUFS) The rate of absorption
of modern machinery and technology in the industry has been slow and this
adversely affects cost and productivity. An upward shift in technology
and incorporation of modern machinery are imperative for ushering rapid
quantitative changes in production, commensurate with consumer preferences
at home and abroad. The Government has launched the Technology Upgradation
Fund Scheme (TUFS) w.e.f. 1st April, 1999 to give the industry access to
timely and adequate capital at internationally comparable rates of interest
for upgrading its technology and improving its competitiveness as well
as long term viability. The industry has to take advantage of this opportunity
and overhaul the outdated technology used in different sectors of the industry,
particularly the decentralised sector. Till December 31, 1999, 208 applications
have been received by the financial agencies concerned and 129 textile
units have been sanctioned loans for an amount of Rs. 1485 crore under
the scheme.
COTTON TECHNOLOGY MISSION Given the importance
of cotton in the Indian textile economy, a Technology Mission on Cotton
has been approved to improve cotton production, productivity and quality.
The Mission will focus on research for improving seed technology, extension
of technology to the farmers improvement of marketing infrastructure and
efficient cotton processing by way of improved ginning and pressing.
INFORMATION TECHNOLOGY(IT) Recognising that integration of Information Technology (IT) in textiles industry is of crucial importance for increasing the competitive strength of the industry, the Ministry took the initiative of declaring the year 1999 as IT Year in Textiles. The Ministry organised Seminars and Exhibitions on IT known as TEXINFOTECH’99 at various places for propogating the advantages of integration of IT solutions, including ERP solutions, CAD/CAM and other I.T. based tools in improving the speed and quality of production and cutting down overall time overrun. These awareness programmes brought together the users and practitioners of IT to demonstrate how IT solutions could be adopted by textile units, irrespective of their size, in order to convert their comparative advantages into competitive strength. Earlier in the year,
an Economic Research and Market Intelligence Unit (ERMIU) was set up in
the Ministry at Udyog Bhawan, New Delhi and in the Textile Commissioner’s
Office at Mumbai with online connectivity. The ERMIU is designed to function
as a storehouse of data on textiles and related matters and also to provide
periodic issue-based inputs including research findings by way of policy
inputs to the Government. This facility is available on-line to other textile-related
organizations and industry associations.
JUTE India had withdrawn
from the membership of International Jute Organisation (IJO) in April,
1998 as it was felt that the working of the IJO was not conducive to its
interest. However, on repeated urging from Bangladesh, the largest exporter
and EU countries, the major consumers, that India’s withdrawal has created
a vaccum and diluted the very purpose of the organisation then and has
threatened its survival, the matter was reconsidered and India has rejoined
the IJO in December, 1999.
QUOTA POLICY AND EXPORT INITIATIVE Till the phasing out of the Multi-Fibre Agreement (MFA) by the end of 2004, it was necessary to streamline the textile export quota regime, so as to benefit textile trade and industry. Accordingly, the formulation of a suitable Export Quota Policy covering the period 2000-2004 was given priority and new Quota Policies relating to this period have been put in place. These policies aim at further simplification of the procedures; phased utilisation of quota; linking of quota for new investment with capital goods investment under the Technology Upgradation Fund Scheme and making New Investment Quota Entitlements non-transferable. Various steps have been taken to boost exports. These include reduction in the threshold limit under zero duty EPCG Scheme in respect of certain prescribed textile machinery from Rs. 20 crore to Re. 1 crore, addition of lining and inter-lining materials to the list of other items of trimmings and embelishments allowed duty free and a higher ceiling of 500 million kg for export of cotton yarn of count of 40s and below. Government took effective steps in securing a favourable decision from the Dispute Settlement Body of the World Trade Organisation in the matter regarding imposition of quota restrictions by Turkey subsequent to its joining the European Union. Two parallel proceedings under ‘anti dumping’ and ‘subsidies’ initiated by EC against the import of polyester textured filament yarn originating, inter alia, from India were terminated as the complainants withdrew the complaints. Anti subsidy proceedings on import of Polyester Staple Fibre from India have also been dropped. India hosted the
4th meeting of Asia Pacific Textile Clothing & Industry Forum, at Ashok
Hotel, New Delhi on 13-14th December, 1999. It was attended by 54 delegates,
from 11 countries, besides delegates from India. The Forum decided to have
an Integrated Database to promote mutual cooperation between various countries
of the region.
TEXTILE POLICY The Expert Committee
on Textile Policy, which was set up in July, 1998 has submitted their report
and recommendations on policy measures to improve the productivity and
competititve edge of the Indian textile industry in a holistic manner,
in the context of the liberalised trade and industrial policy and globalisation
of trade under WTO. These recommendations have been under careful examination
for framing a new Textile Policy.
FIBRES AND HANDICRAFTS PROGRAMME UNDER CCF-I The Fibre and Handicrafts
Programme under the Country Cooperation Framework-I with UNDP funding was
launched in April, 1999. The project would be operative for three years
covering angora wool, jute, non-mulberry silk, carpets, cane and bamboo.
The primary focus is on employment generation with special focus on women
through sustainable activities.
RESEARCH AND DEVELOPMENT Recognising the emphasis on environment conservation all over the world, the Ministry has taken care to set up eco-testing facilities throughout the country so that Indian textiles conform to global environmental standards and are not discriminated against. In particular these measures will facilitate the entry of our exports into developed countries without infringing the provisions of the standards regarding permissible use of dyes and chemicals. At present 20 such laboratories are functioning in the country. In addition, the
Ministry has undertaken a programme for upgrading the physical and chemical
testing facilities of the laboratories under different Textile Research
Associations (TRA), Textiles Committee, Education Institutes and PSCs.
During the year, as many as 15 laboratories were taken up for upgradation
and the total number of laboratories so far upgraded stand at 52.
CONSUMER PROTECTION The Standing Committee
on Consumer Matters set up by the Government under the Chairmanship of
the Textile Commissioner has created an increased awareness among the textile
consumers about various quality parameters. The Regional Offices of the
Textile Commissioner and the Textiles Committee, in close co-ordination
with local NGOs, State Government officals and consumer activists have
conducted 9 Consumer Awareness Seminars/Workshops in various parts of the
country during the current financial year. It is proposed to organise 20-25
more consumer awareness seminars/workshops during the remaining period
of the current financial year.
OTHER SECTOR SPECIFIC DEVELOPMENTS AND ACHIEVEMENTS National Institute of Fashion Technology (NIFT) NIFT Calcutta started functioning from August 1999 from its own premises. The second phase of construction is in progress. NIFT organised, in collaboration with Apparel Export Promotion Council (AEPC), the National Apparel Summit in May, 1999 to explain to the entrepreneurs the issues and challenges of the post -2004 WTO regime. NIFT continues to render services to the International Foundation of Fashion Technology Institute (IFFTI) Secretariat. It participated actively in the Second Annual Conference of IFFTI at Sao Paulo, Brazil on November 17-19, 1999. During this Conference, NIFT, in association with AEPC put up a fashion show at Universidade Anhembi Morumbi (UAM), Brazil and displayed collections of reputed Indian designers, some of them NIFT Alumni. NIFT, in close cooperation
with the Textile Commissioner, is assisting the Garment Industry in the
implementation of the Technology Upgradation Fund Scheme. Technical Consultancy
Cells set up by the GMT Department of NIFT is interacting with the interested
entrepreneurs and SIDBI (Small Industrial Development Bank of India) in
the implementation of this programme.
HANDLOOMS The Finance Minister introduced a New Integrated Handloom Promotion Scheme called "Deen Dayal Hathkargha Protsahan Yojna" in his budget speech for the year 1999-2000 to encourage processing facilities, new design inputs to weavers and opening new avenues for marketing for handloom fabrics. The modalities of the scheme are being worked out in consultation with the Planning Commission and other agencies. A National Design Centre (NDC) has been set up by NIFT in collaboration with the HEPC and WSCs, in the premises of ACASH Handloom Pavilion at Pragati Maidan, New Delhi. It has CAD facilities, internet service, a website, design cataloguing etc., primarily to identify and dessiminate design and colour trends for successful development of handloom exports. This was inaugurated and formally launched on 25th January, 2000. To strengthen competitiveness
of handloom products by creating technological awareness among the personnel
involved in propagating handloom activities in different parts of the country,
a series of human resource development (HRD) programmes have been undertaken
through IIT, Delhi. These programmes broadly cover areas of processing
of handloom yarn and fabrics, yarn preparation for weaving, design development
and quality control. More than 100 personnel from WSCs, IIHTs, NHDC etc.
have been imparted training in these areas.
HANDICRAFTS National Level Design Centre A National Level
Design Centre is being set up at Moradabad and Delhi to cater to design
requirements of the sector. The centre would provide CAD facilities, drawing
experts and professionals from various disciplines, such as design, technology,
computer and management etc. The centre would be governed under an autonomous
institutional frame work. The approved project cost is Rs. 5.37 crores
approximately. National Centre for Design & Product Development will
be responsible for implementation of the project, which is in an advance
stage.
Urban Haats A new scheme for
setting up of Urban Haats on the pattern of already successful Dilli Haat
has been introduced during the Ninth Five Year Plan to set up permanent
marketing structures for the artisans. So far, four such haats have been
sanctioned at Bhubneswar, Ahmedabad, Agra and Calcutta. During the Ninth
Plan it is proposed to set up 17 such haats. 70% of the cost of setting
up of the Haat is provided by the Ministry [shared equally between DC (Handlooms)
and DC (Handicrafts)] and the balance is provided by the State Government/implementing
agency concerned. Under this scheme, Delhi Haat type infrastructure would
be created at prime locations where artisans and weavers would get an opportunity
to sell their products directly to the consumers.
Indian Institute of Carpet Technology, Bhadohi Indian Institute
of Carpet Technology has been conceived with the objective of providing
support to the carpet industry in facilities like designing, colour matching
etc. The Institute will not only conduct research and development work
for improving/standardizing existing techniques of production but will
also provide training and Common Facility services to the industry. The
Institute is expected to be fully functional within a period of 3 years.
Short-Term Training courses on dyeing of woollen yarn and use of natural
dye had been conducted in November, 1999.
Setting up of Indian Trade Mart An Indian Trade Mart
is being set up with the objective to provide support to cottage and small
scale handicrafts units/exporters in their marketing efforts. A need has
been felt to open a permanent contact point within the National Capital
Region of Delhi where all foreign importers or wholesalers of handicrafts
can visit anytime during the year. The Mart will be a centralized and permanent
contact point, open throughout the year for buyer-seller interaction. The
proposed Mart will be a State-of-Art project having an exposition area
proposed to house approximately 600-700 outlets and a Resource Centre with
latest IT facilities. The Export Promotion Council for Handicrafts working
under the administrative control of the Ministry of Textiles, is the implementing
agency. The Govt. of U.P. has allocated land for the Trade Mart.
Geographical Information System (GIS) on Handicrafts A GIS-based Handicrafts
Database and information system is being prepared in association with IIT,
Delhi. The main objective of this project is to develop a spatial decision
support tool by creating an integrated database on handicrafts survey and
census data for resource planning and programme evaluation. Uttar Pradesh
has been selected as a pilot state and the project would later be extended
to include other States.
UPGRADATION OF POWERLOOM SERVICE CENTRES A programme to upgrade
the loomage and other training facilities of the Powerloom Service Centres
during the 9th Five-Year plan period has also been approved by Ministry
of Textiles. Under this programme, 21 Powerloom Service Centres (out of
the total of 43) will be upgraded in Phase-I at an estimated cost of Rs.
16 crore. The remaining 22 Powerloom Service Centres will also be upgraded
in Phase-II during the Xth Five Year Plan.
Miscellaneous Activities RELIEF TO THE VICTIMS OF SUPER CYCLONE IN ORISSA In the wake of the
devastating cyclone that hit the Orissa coast, the Government of India
has set up a High Powered Task Force under the Chairmanship of Minister
of Defence. Under the directions of the Task Force, the Ministry of Textiles
was given the responsibility for providing relief to the affected people
in Block Sadar, Kendrapara District. Shri B. Mahapatra, Chairman &
Managing Director, National Textile Corporation (WBAB&O) Ltd., was
appointed as Co-ordinator to tie-up the arrangements with all the Public
Sector Undertakings (PSUs) concerned under Ministry of Textile. In co-ordination
with the Textile PSUs and the Office of the Textile Commissioner, relief
in kind consisting of dhoties, sarees, blankets & utensils, to the
tune of approximately Rs. 3 Crore,was arranged for distribution to the
cyclone affected victims.
In addition, the Ministry of Textiles fielded a team comprising representatives from Office of Development Commissioner (Handlooms), Office of Development Commissioner (Handicrafts) and Central Silk Board, to assess the damage caused and suggest steps for rehabilitation. On the basis of their report, various activities have been taken up for the weavers and artisans, such as organising the sale of finished goods produced by the Orissa artisans at the Delhi outlet of the Central Cottage Industries Corporation and santion of schemes for the relief of weavers and artisans. 2000 pit looms are being provided for distribution to the affected weavers, in co-ordination with the State Government. On receipt of detailed proposal from the State Government, funds would be released under various ongoing schemes of the CSB. It has also been decided by the Ministry of Textiles that in the Expos/Exhibitions being held during the year 2000, a special pavilion would be earmarked for Orissa handloom and handicrafts. Celebration of Hindi Golden Jubilee Year In the Ministry of
Textiles and its offices, a month wise programme of activities has been
prepared. Staff members have been involved in various Hindi Competitions
on subjects such as essay writing, noting and drafting, debates, objective
test, story writing, poetry recital etc. Hindi workshops are also organised,
wherein lecturers from the literary circle and experts on the Official
Language Policy to the officers & staff members and they are give them
exercises to practice speaking and writing in Hindi to facilitate their
official work in Hindi. Various organisations have brought out special
issues of their House Journals in Hindi with informative, interesting &
entertaining articles for the benefits of the staff members.
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