NEH 101: Opportunities and Initiatives University of Baltimore March 11, 2011
Emerging Opportunities & Policy initiatives for the … Opportunities & Policy initiatives for the...
Transcript of Emerging Opportunities & Policy initiatives for the … Opportunities & Policy initiatives for the...
Emerging Opportunities & Policy initiatives for the Growth of Textile
Dr. Chandan Chatterjee Director
The Center for Entrepreneurship Development
& Advisor, iNDEXTb
Ahmedabad
1st March 2013
India – to dominate Textile World
China Slows down
Bangladesh and Pakistan battle with energy shortage, besides dependency on raw material
Young India
China, conversely, is aging faster than any other country in history
By 2020, US will be short of 17 million people of working age, China by 10 million, Japan by 9 million and Russia by 6 million. India will have a surplus of 47 million working people
Over 35% of our population is below the age of 20 by 2020. India will get 350 million as working age…largest in the world
Impact of National Textile Policy
Indian Textile- 1960 and beyond……
1960- Ban on expansion of Weaving capacity
Mushrooming decentralized Power loom with
discarded loom( replacement policy in force)-
permit till 1980
National Textile Policy
1985- National Textile Policy-
power loom old and obsolete
technology regularized
Textile 1990 & beyond..
Foreign Collaboration in Processing Machinery
till 1990
1990- liberalized..import of outdated Sulzer tech
1991-Liberisation Policy ..
Spinning EOU..
Discarded M/C makes small spinning at
Coimbatore and Ahmedabad
Impact of TUF and Cotton Technology Mission –1999
Targeting- Weaving/Processing Rs74,000cr since1999
20M spindle in 1990 to 30 M in 2010 and
1.4 M loom to 2.5 M Loom
Spinning after 3 years only due to free Trade Regime
Weaving –only 30,000 new installation
Processing- demand for hi-tech was low till 10 % Credit linked subsidy
announced
Cotton Technology Mission.. Successful for Ginning sector
Policy 2000,,, Garment out of SSI list
Prevailing supports by GoI and impact
TUF Scheme
(*) 5% Interest Reimbursement on plant & machinery without
any ceiling in all Textile Sector; but 4% incase of only Spinning
Additional 10% Capital Subsidy for new shuttleless loom
(Weaving), Processing, Garment and Technical Textile
25% Capital Subsidy for Handloom & Silk Sector
2% Interest Subvention Scheme – Foreign Trade Policy (*) Note
a) Investment in building, Pre-operative expenses and margin money for working capital for
Apparel & Handloom (50% caps) and humidification plant, compressor, RO Plant, Beam
knotting (10% caps)
b) Powerloom in SSI (Rs. 5 cr) – 20% margin money (Max Rs. 60 lakhs for second hand
imported shuttleless loom and independent preparatory units but Rs. 100 lakhs for new
shuttleless loom) – 15% promoters
c) Bench marking of price for imported second hand shuttleless weaving
d) Indigenous Machinery Manufacturers – are benchmarked
e) Interest Reimbursement - for 7 years considering 2 years for implementation/moratorium
period
f) Rs. 178 crore – 11th Plan + Rs. 158.86 crore 5
Impact of Union Budget -2013-14
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TUF Scheme Extended
Import duty on Textile Machineries Slashed
Removal of Excise duty on Garments
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Interest Subsidy
Raw Material/VAT
Manufacturing Facilities
Infrastructure & Technology
Centers for excellence
R & D and Quality Assurance
Skill Development
Achieving Competitiveness
Power Tariff subsidised
Market Development
Policy approach by Gujarat
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Encouraging Environment Friendly &
Energy Efficient Technology
• Support for Energy & Water
Conservation to existing units (more
than 3 years) Assistance up to 50%, Max Rs. 50,000 for Energy
Audit and Water Audit (for processing units)/Envio
Assistance up to 20% of cost of equipments, Max Rs.
20 lakhs
• Support for Environmental
Compliance
Opportunities….To grow with green….
Collaboration
Joint Ventures
Technology Transfers
Nike –Dye Co Water free Technology
TORAY-Silicon Technology