Action plan to boost textiles in the offing
Updated: Jul 10, 2013 05:00:15pm
New Delhi, Jul 10 (KNN) The government plans to come out with an action plan to improve the textile sector and ramp up manufacturing in order to boost exports, in the wake of the economic slowdown.
A panel led by Prime Minister Manmohan Singh will handle the task of upgrading the manufacturing sector, especially the production of textiles, steel civilian aircraft and electric and hybrid transport.
The decision comes owing to the depreciation of the rupee which has badly hit the textile sector. The goal of the strategy would be to leverage the strengths in cotton and other fibres to enhance employment generation and achieve a greater share in global markets, especially in apparel.
Earlier, addressing a meeting of the high-level committee on manufacuring, the prime minister called for removing the bottlenecks hindering the growth of the sector in the country.
The meeting was attended by all the ministers and officials of departments relating to the manufacturing sector including the Ministers of Science and Technology, Heavy Industry, Civil Aviation, Steel, Textiles and MSME and the Deputy Chairman of the Planning Commission.
The discussion centred around the proposals made by the National Manufacturing Competitiveness Council which were presented by the Chairman, Krishnamurty.
"Often, our production is at the lower end of the value chain. Our exports consist of raw materials and primary goods and our imports consist overwhelmingly of manufacturing," the prime minister said.
"We need to remedy this situation by removing the bottlenecks that hinder our progress in manufacturing and taking full advantage of our strengths."
To boost manufacturing of steel and textiles, the prime minister asked the concerned ministries to come up with "action plans".
The prime minister pointed out that India has done well in some sectors like automobiles, auto-components, pharmaceuticals, metals and cement in the last two decades.
"However, we have not been able to leverage our strengths both in traditional industries and in emerging sectors to the extent we could have. We hardly have any manufacturing capabilities in electronics and telecommunications," he said.
Singh said boosting of manufacturing output was essential to achieve 8-9 per cent growth rates.
"If we have to grow at 8-9 per cent in the future, this has to come through sustained growth in manufacturing, particularly labour-intensive manufacturing."
The textile industry has been finding it difficult to cut cost owing to the higher cost of production, hence diverting the export orders from western countries, causing them to look for more cheaper options like Bangladesh.
Also, according to the Markit survey, India's manufacturing PMI remained broadly flat in June at 50.3.
"India's manufacturing sector activity remained broadly flat in June as new orders declined for the first time in over four years and power cuts and fragile economic conditions weighed on the sector's performance,” an HSBC survey said Monday.
India is going through a e onomic slowdown, which even reached upto its record lowest mark of 5 in the last fiscal. (SD/KNN)
A panel led by Prime Minister Manmohan Singh will handle the task of upgrading the manufacturing sector, especially the production of textiles, steel civilian aircraft and electric and hybrid transport.
The decision comes owing to the depreciation of the rupee which has badly hit the textile sector. The goal of the strategy would be to leverage the strengths in cotton and other fibres to enhance employment generation and achieve a greater share in global markets, especially in apparel.
Earlier, addressing a meeting of the high-level committee on manufacuring, the prime minister called for removing the bottlenecks hindering the growth of the sector in the country.
The meeting was attended by all the ministers and officials of departments relating to the manufacturing sector including the Ministers of Science and Technology, Heavy Industry, Civil Aviation, Steel, Textiles and MSME and the Deputy Chairman of the Planning Commission.
The discussion centred around the proposals made by the National Manufacturing Competitiveness Council which were presented by the Chairman, Krishnamurty.
"Often, our production is at the lower end of the value chain. Our exports consist of raw materials and primary goods and our imports consist overwhelmingly of manufacturing," the prime minister said.
"We need to remedy this situation by removing the bottlenecks that hinder our progress in manufacturing and taking full advantage of our strengths."
To boost manufacturing of steel and textiles, the prime minister asked the concerned ministries to come up with "action plans".
The prime minister pointed out that India has done well in some sectors like automobiles, auto-components, pharmaceuticals, metals and cement in the last two decades.
"However, we have not been able to leverage our strengths both in traditional industries and in emerging sectors to the extent we could have. We hardly have any manufacturing capabilities in electronics and telecommunications," he said.
Singh said boosting of manufacturing output was essential to achieve 8-9 per cent growth rates.
"If we have to grow at 8-9 per cent in the future, this has to come through sustained growth in manufacturing, particularly labour-intensive manufacturing."
The textile industry has been finding it difficult to cut cost owing to the higher cost of production, hence diverting the export orders from western countries, causing them to look for more cheaper options like Bangladesh.
Also, according to the Markit survey, India's manufacturing PMI remained broadly flat in June at 50.3.
"India's manufacturing sector activity remained broadly flat in June as new orders declined for the first time in over four years and power cuts and fragile economic conditions weighed on the sector's performance,” an HSBC survey said Monday.
India is going through a e onomic slowdown, which even reached upto its record lowest mark of 5 in the last fiscal. (SD/KNN)
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