Union Finance Minister, Shri Pranab Mukherjee has said that the Government is sensitive to the needs of textile industry and will continue to provide the textile industry a conducive policy environment to facilitate its growth, augment R&D efforts, and encourage innovation with a view to enhance productivity. Shri Mukherjee was inaugurating the Tex-Trends India, here today. He said that the Government supports up-gradation of technology, manufacturing processes and the development of human resources for this industry and towards this end, the Union Budget 2010-11 took several initiatives. The Minister said that the Government has included a significant increase in funds allocated to Cotton Technology Mission and to the integrated textile parks, and extension of the interest subvention of 2 per cent until March 31, 2011 for exports covering handicrafts, carpets and handlooms segments of this industry. Shri Mukherjee said that the textile industry is also being supported with an extensive skill development programme to train 3 million persons over a 5 year period, by leveraging the strength of existing institutions under the textile ministry. 

Following is the complete text of the speech of Union Finance Minister, Shri Pranab Mukherjee delivered on the occasion of inauguration of Tex-Trends India: 

“It gives me great pleasure to be here today at the inauguration of Tex-Trends India-2011. It is a unique fair with a blend of the traditional and the modern textiles that brings together the best in India. I am told this exposition is the largest of its kind organized in India. It has been made possible due to the collective efforts of the Ministry of Textiles, Ministry of Commerce and Industry and the Export Promotion Councils under the Textiles Ministry, who have collected under one roof, the diversity, tradition and colours that the Indian textile and handicrafts industry has to offer. 

I have learnt that this unique show has been sponsored by the Ministry of Commerce and Industry as a part of its global “Made in India Shows” for showcasing India’s products across all sectors through exhibitions being held in India and abroad. Let me congratulate you all for putting together a show of this magnitude and quality. 

Textiles sector is a significant part of our economy, in terms of employment, share of national output and contribution to exports. The Indian textile industry accounts for about 14 per cent of our total industrial production and contributes to nearly 15 per cent of total exports, which amounted to US dollar 50 billion in the year 2009-10. It provides direct employment to about 35 million people and another 56 million are engaged in allied activities. 

Textiles occupy a special place in the collective consciousness of our people, for there is not a single state or region in our country that does not have its own special contribution to textiles and clothing. Blessed with abundance of all the natural fibres, over the years, the textile industry in India has built up significant capacities and capabilities. 

The dismantling of textiles export quota regulation after 2004 has brought in a paradigm change in the global markets for textiles and clothing. While the liberalized policy regime created opportunities for trade, it also brought in stiff competition, new players and trade restrictions in the form of non-tariff barriers. The initial promise that the opening up of the markets held for Indian textile exports could not be sustained due to competition, including from our neighboring countries. 

I am aware that serious efforts are being made by the Textile Ministry to increase textiles exports and Tex-Trend 2011 is a step in that direction. The Ministry of Commerce and Industry is also contributing to that process. I am happy to learn that Ministry of Textiles has finalized the formulation of the National Fibre Policy. This helps in improving the competitiveness of all segments of the textiles industry. 

The Government is sensitive to the needs of this industry. It has provided and shall continue to provide the textile industry a conducive policy environment to facilitate its growth, augment R&D efforts, and encourage innovation with a view to enhance productivity. The Government supports up-gradation of technology, manufacturing processes and the development of human resources for this industry. Towards this end, the Union Budget 2010-11 took several initiatives. It included a significant increase in funds allocated to Cotton Technology Mission and to the integrated textile parks, and extension of the interest subvention of 2 per cent until March 31, 2011 for exports covering handicrafts, carpets and handlooms segments of this industry. The textile industry is also being supported with an extensive skill development programme to train 3 million persons over a 5 year period, by leveraging the strength of existing institutions under the textile ministry. 

India's textiles and clothing industry has a great potential. It is one of the mainstays of national economy. With consistent growth performance, abundant cheap skilled manpower and growing domestic demand there are enormous opportunities for domestic and foreign investors to profit from investments in the Indian textile sector. Indeed, India allows 100 per cent FDI under the automatic route in the textile industry, which makes it a promising destination for investments. 

The economic reforms pursued by successive Government over the last two decades have unleashed a new era of high growth in the Indian economy, especially so in the last 5 to 7 years. The textile sector has seized the opportunity presented by this growth. We need to accelerate and sustain this momentum through a combination of timely policies for enhancing investments, rapid improvement in our infrastructure and making our growth process more inclusive. 

Indeed a major challenge before our nation today is to deepen and sustain the path of inclusive development. As the Indian economy grows rapidly, it is important that all segments of our society get to participate in and benefit from the growth process. The textile industry in its various forms such as, woollen textiles, cotton textiles, silk textiles, readymade garments, Jute and Coir, hand crafted textiles and manmade textiles, is playing its role in promoting inclusive growth. It is contributing to broad based socio-economic development by providing employment opportunities at local level in a dispersed manner. In this context, it is necessary to renew our efforts to provide banking and financial services to the rural textile sector. Financial inclusion can unlock the vast hidden potential of savings, consumption and investment propensities of the poorer sections of our economy for the overall development of the country. 

In the post-global financial crisis period, even as the economy gathers momentum and our exports grow, there are many sectors of the economy that need policy attention. As the time for Union Budget draws closer, the expectations of actors from these different sectors of the economy tend to rise. I consider this a healthy sign for a growing economy. I assure you that as the Government prioritizes its commitments and resources in the overall interest of the economy, the textiles industry, including its rural dimension, will be given the priority that it deserves. 

Let me conclude by congratulating the textiles industry for joining hands with the Government in the successful organization of this exposition. I am confident that Tex-Trends India-2011 will succeed in projecting India as a preferred sourcing country for the overseas buyers. I wish the exhibitors and their foreign collaborators all success in their business endeavors.”