India witnessed exports to the tune of $ 300 billion in the last fiscal,while imports were worth $ 500 billion. The gap is huge $ 200 billion. Disclosing this on Wednesday,Union Textile Minister Dr KS Rao said that for a healthy growth,exports must go up and to fill in the gap,industrialists need to be given special incentives.
Rao was in the city today to interact with industrialists at a function organised by Knitwear club. He said that they try to boost exports in handicraft items by giving subsidy worth Rs 100 crore for setting up a warehouse to store the product. We will be increasing this subsidy because the growth is healthy after this move. I am making efforts to revive the textile sector and to help increase its export. This should be done by other departments as well, he added.
Rao,meanwhile,admitted that cheaper textile products from China and Bangladesh were flooding the Indian market,which were hitting Indian products. He said that he,along with Union minister Manish Tewari,will urge the finance minister to impose anti-dumping duty on the products coming from China and Bangladesh.
To control the ever-increasing cotton prices,the minister said,We have submitted a proposal to the FM for a working capital subsidy to the cotton mills,so that they can set up warehouses inside their units. This way,they can store cotton for upto six to eight months inside the warehouse,which will help in controlling the frequent price fluctuation.
NIFT for Ludhiana
Giving in to the demand of the industrialists,the Union minister announced that NIFT will be set up in Ludhiana. The industrialists assured that land will be provided at a textile park coming up at Doraha. Rao said that ideally the state government should provide infrastructure for this project,however,in case they dont take this initiative,the Centre will ask the industrialists to work on a PPP model.
The minister also announced Rs 10 crore grant for setting up an exhibition centre in Ludhiana to organise buyer-seller meets.
Pay stipend for 3 months,we will train workers: Industry to Centre
Facing shortage of labour for a long time now,the industrialists have come out with a possible solution. They are ready to train unskilled workers by creating their own infrastructure if the Centre pays Rs 1,000 as three months stipend,to make the workers finish the training. Industrialists so far have been alluring the workers by various ways and means,but this failed to fill the gap with 30 per cent labour shortage still existing,said Narinder Miglani,General Secretary,Knitwear club.
Union Textile Minister Dr KS Rao,meanwhile,said: The textile department will support the three months stipend,but the industry need to train fresh workers and not the existing ones in their factories. He also allocated Rs 50 crore for the scheme. As the industrialists lamented that the labourers ran away to their native states UP and Bihar after the introduction of MGNREGA scheme,the minister said he had taken up the matter with the Department of Rural Development. He said that the matter is under consideration to bring training of unskilled workers in factories under MGNREGA.