Cut in funds hits textile R038;D

The Centre8217;s decision to decrease funds to research and development activities in the textile sector by 10 per cent every year has left the industry baffled.

The Centre8217;s decision to decrease funds to research and development activities in the textile sector by 10 per cent every year has left the industry baffled. Despite the government8217;s decision in 2002, the textile ministry has been unable to utilise funds amounting to almost Rs 700 crore in the last four financial years.

As pointed by a report of the Standing Committee on Labour, the funds unutilised by the ministry were to the tune of Rs 112.55 crore in 2002-03, Rs 121.34 crore in 2003-04, Rs 148.13 crore in 2004-05 and Rs 313.39 crore in 2005-06.

It8217;s no coincidence then that the decision to decrease funds to Textile Research Associations was taken in 2002 which ensured that all this while allocation of funds to TRAs have been on a constant decline. Further, the report mentions that at 23.26 per cent the level of non-utilization of funds is the most acute in R038;D itself.

The deplorable state of R038;D activities in the sector is one of the major reasons for the industry not able to break into the big league in the global trade scenario. 8220;Lack of innovation has ensured that Indian textile today is neither cost competitive enough like China or respected enough like Turkey,8221; said Anant Bir Singh Sadana Vice President and General Manager, Indian Subcontinent GAP Inc.

The ministry8217;s poor planning coupled with industry8217;s lack of enthusiasm has resulted in the country not having even one global patent to its name either in machinery or in yarns and fabric. This is despite the fact that textiles is the largest industry in the country today in terms of employment generation and exports and has a 2000 year old history.

While innovation is driving exports in other countries, R038;D has been totally neglected as is evident by the condition of the various TRAs in the country today.

8216;8216;The TRAs were always partly funded by the government and the industry. Before 2002, government funds were to the tune of 50 per cent of our recurring expenditure but now its down to about 25-30 per cent. Some government grants have to be there or else long term R038;D will suffer,8217;8217; said South India Textile Research Association Director Dr Arindam Basu.

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Since 2002 grants to TRAs have seen a 50 per cent drop from Rs 2.5 crore to about Rs 1.3 crore per annum. Basu believes that with the government inclined to phase out all funding by 2013, most of the TRAs will go the training and consultancy way for survival.

The government has, however, been paying lip service to underline the importance of R038;D on more occasions than one. 8216;8216;Industry needs to adopt best practices and encourage R038;D to attain global dominance,8217;8217; said textiles minister Shankersinh Vaghela. But the sentiment has not been followed in spirit.

The industry also shares the blame because it is averse to taking risks. 8216;8216;The infrastructure here to support research is insignificant. Further though in house R038;D is on an upswing, the corporates do not have the capital to invest in serious research related activities,8217;8217; said North India Textile Research Association Director Dr J.V. Rao.

But the way forward is not that bleak. Rao believes that recession in Europe and US will ensure that R038;D will be outsourced to India and more and more multinational companies will fuel research in the country in future. 8216;8216;Our output may be low but we atleast have a R038;D wing right now. By 2013 we will not even have that. But there is cause for some optimism as R038;D centers from Europe will shift to India,8217;8217; he added.