Vaghela invites foreign investors; promises reforms
Mumbai, Apr 20: Promising a reformed labour policy by the year end, Union Textile Minister Shanker Sinh Vaghela today invited foreign investors to become part of growth saga of Indian textile sector.
Inagurating a two-day 4th International Textile and Apparel Congress-2006 (ITAC), he asked the overseas investors '' to come forward and be part of the growth process by investing in the Indian textile sector ''. He also promised the industry that '' the government is planning to introduce a much-toned down labour policy by the end of this year''.
Enam Financial Consultants Chairman Vallabh Bhansali said competition in the textile sector can be tackled by adding value to existing products. He said '' companies will have to learn to sacrifice their stakes to some extent and also to learn to compromise on margins and comfort to add value to their products and then think of large growth.'' Alok Industries Managing Director Dilip Jiwrajika, while talking to UNI, said potential is great for joint ventures, and Indian companies who are vertically integrated will hold advantage over those who have not diversified their production. He further said '' retail too has huge potential in textiles and it is only a matter of time before government opens its doors for FDI in retail. It will help to introduce quality products at competitive price in the Indian market''.
Organised by leading consultants Technopak Advisors, its Chairman Arvind Singhal said the forum is an active place for buyers and suppliers to gather each others' perception. He said with global trade exceeding USD 450 billion, it is only worthwhile to have an interactive one- to-one session, where the buyers would know about the global requirements and suppliers would have the feel of the global competition.
The growth of India and South Asia as a whole in the textiles sector is a much talked about phenomenon after the abolition of quota under the World Trade Organisation. South Asia's exports to US and the EU has grown by 13 per cent and 8 per cent respectively, However, the biggest competition has come from China, which has seen a tremendous growth of 41 per cent and 24 per cent to US and EU respectively.