Need to review six decades old SOP for formulating Textile Policy.

The frantic efforts by China to arrest the steady decline in their exports is indicative of tough times ahead. Chinese foresight & their corrective steps in advance should inspire our policy makers to engage at ground levels and take serious notes, well in advance. The ambiguous & vague policies, without consultation with actual stakeholders have done more harm to Indian Textile trade & Industry. The present government too, is still following the primitive consultative & policy making systems, setup 6 decades ago. The stakeholders in each industry should be well defined, and due representation each segment of that industry should be given. Taking into confidence each segment will help in policies which leads India to inclusive & sustainable growth. India’s largest employment sector TEXTILES, comprises of farming, ginning, spinning, weaving, processing, garmenting, value additions etc.  The inherent strength of this sector could withstand years of neglect and faulty policies. The Central Excise wide its Notification no. 34/2015 – Central Excise dt. 17.7.2015 got the entire Indian textile Industry to a standstill. The issue was resolved on 23rd July with another clarification notification by excise department. This is a classic example of inconsistent, vague & ambiguous policies, without consulting stake holders, which dwarfs the growth of Textile Industry in India.


Downward pressure on prices of all commodities including crude, cotton, coal, metal, etc., has lead to nervousness across all levels of trade & Industry, both nationally and internationally.  Sustaining in international market requires collective tackling of each sector of Textile industry. A common unbiased platform is the need of the hour and TEXTILE FRIENDS is a step in right direction.


Non functioning of Parliament may lead to further delays in implementation of GST. The International and Indian Industry & Trade associations are eagerly awaiting GST, as this is a pre-requisite for ‘Make in India’. The various Tax windows opened over last several decades needs to be reduced in lines with developed countries of the world. Multi window taxation leads to corruption at various levels. MNC’s are afraid of this due to tough laws in their own countries for acts of corruption, done by their people in India.


The trade/industrial associations are disappointed with the partial withdrawal of LBT in Maharashtra, which is against the written poll promise dated 12th February 2014 by Hon’ble CM. With the notification no. 47/2015 dated 23.7.2015, the Maharashtra Government has kept this additional tax window open, which is prone to misuse, harassment & corruption. It is pertinent to note that the industry & trade is not against contributing to the tax kitty of our nation, but they want minimum inspector raj, least compliances and zero revenue leakages for the exchequers.

FIBRE NEUTRALITY, DUTIES & INDIRECT TRADE BARRIERS have lead India to become uncompetitive world over in polyester and viscose industry.  The Indian textile could not grow in all sectors due to these disparities, protectionism & license raj. The monopolies & cartels created are slow poison for the Indian textile Industry and will spell doom for those enjoying it too. The unprecedented growth of technical textiles & high value textiles by other countries at the cost of India is very alarming. We need to review our policies both in short term as well as long term and also at micro and macro level.


Currently textile production at most major centers viz. Bhiwandi, Malegaon, Surat, Ahemdabad, Bhilwara, Coimbatore, Ichalkaranji etc. is on an average at 50%. The spinners & weavers are making losses on stocks due to continued reduction in prices of cotton and manmade fibers.  Frantic efforts by local MLA’s, MP’s of these constituencies are leading to no respite. MP, Kapil Patil of Bhiwandi is addressing weavers of textile town of Bhiwandi this week too.


Ex- Honorary General Secretary, Bharat Merchants’ Chamber

Ex-member of International Business Committee, IMC

Ex- DRUCC Member Western Railway, Mumbai Division

Ex-Committee member Forum of Affiliated Association, IMC