Make in India policy likely to destroy the local textile industry

Demand to remove anti-dumping duty on yarn is being raised from various circles including Federation of Surat Textile Traders Association (FOSTTA), Malegaon Industries and Manufacturers Association (MIMA), Bhiwandi Powerloom Federation and other organisations working for the industry. Also Hyderabad MP and All India Majlis-e-Ittehadul Muslimeen (AIMIM) President Asaduddin Owaisi making a strong appeal to the government to remove anti-dumping duty on synthetic yarn, on Wednesday said that the government’s ‘Make in India’ policy is proving disastrous for the local textile industry.

The government’s Make in India policy is helping just a handful of corporate. It is destroying the local textile industry, Owaisi said in the Parliament on Wednesday.

Distressed people in Malegaon, Bhiwandi, Surat, Sholapur and other textile centers are looking at them with hope and anticipation. The government should without further delay remove the anti-dumping duty on the synthetic yarn imported from China.

Owaisi was referring to a government GR dated October 21, 2015 wherein it has imposed anti-dumping duty on imports of All Fully Drawn or Fully Oriented Yarn/Spin Draw Yarn/Flat Yarn of Polyester (non-textured and non POY).

Because of this government policy, the cost of grey fabrics produced in the country is going up by about 30%. On the other hand, countries like China, Sri Lanka, Bangladesh and Pakistan are given free run to export their produce in India.

Giving a brief overview of the textile industry, Owaisi said that there are about 2.5 million power looms in India providing livelihood to more than 6.3 million people. Textile sector is largest after agriculture. But today the sector is struggling because of governments disastrous policy.

The textile industry in India is in recession mode since two years now. Those associated with the industry said that they had not seen such a situation in last 30 years. The government should remove the anti-dumping duty on yarn, and instead impose a duty on import of fabrics coming from China, Pakistan, Bangladesh and Sri Lanka as the local manufacturers cannot compete with them because they are forced to buy expensive yarn due to the anti-dumping duty.