As , there is a good scope to increase global market share from the current level of about 2.6 percent by exporting value added products and synthetic products. Tirupur Exporters’ Association (TEA) has urged the Tamil Nadu government to set up a textile board with a focused approach for the development of the sector in the state.
The Board may function under the chairmanship of Chief Minister or Minister for Textiles where the Textile Secretary could be the co-ordinator.
It said presidents/chairmen of textile associations such as TEA, Southern India Mills’ Association, Tamil Nadu Spinning Mills Association, could be members and meet periodically, TEA said in its pre-budget memorandum to the government.
The memorandum also urged the state government to provide incentives for setting up technical textiles units in Tamil Nadu. The State Textile Department needs to work closely with the industry for development of technical textiles.
The TEA president A Shaktivel said that Tamil Nadu should bring out a separate State Export Policy in line with Foreign Trade Policy of the centre to give a focused approach for export development of the state.
Requesting provision of five percent interest subsidy under Technology Upgradation Fund scheme, he said that the state textile policy should provide five percent interest subsidy and 10 per cent capital subsidy to new modernization.
Or it should include expansion of garment units on the lines of Gujarat Textile Policy 2012 and Maharasthra Textile Policy (2011-2017), which provide five and seven percent interest subsidy respectively.
Tirupur contributes about 45 percent of total knitwear exports from India and exports only cotton based garments. There is a good opportunity and conducive atmosphere currently prevailing for the growth of garment exports.
Despite this favourable factor, labour shortage is a major impediment for garment exporting units due to which they are hesitant to take up the orders, since it is not possible to execute orders within delivery schedule.
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