Nation faced with stiff competition: Advani

GURGAON, Feb 16: Union Home Minister, L. K. Advani today said that the country would have to gear up to face stiff international competit...

GURGAON, Feb 16: Union Home Minister, L. K. Advani today said that the country would have to gear up to face stiff international competition in the garment export sector. Speaking at the foundation laying ceremony of8220;Apparel mart-cum exhibition complex 8221;here, Advani said that progress in this sector can only be achieved with a dynamic approach. He informed that the garment sector was the second largest source of employement in India after aagriculture and it8217;s potential can be judged by the fact that it accounts for fourteen percent of National Export Earning.

Crediting the entreperneurs for registering the five billion dollar mark during 1998 in garment exports, the Union Home Minister said that the apparel industry can take pride in this at a time when exports of various other commodities have shown a decline due to economic recession.

Union Minister for Textiles, Kashiram Rana informed that the quantitative restrictions currently governing a significant portion of the World Trade in textiles will be phased out by 2004 and with the integration of the international textile trade into the mainstream, the stage would be set for market forces to determine who will succeed in the global market place product quality, price competitiveness, on time delivery and innovativeness in design will be the critical factors determining the success of market players in this sector, the Textile Minister said.

8220;The government was ready to help the apparel industry in it8217;s quest for higher growth. At a time when India is liberalising it8217;s economic policy there is an urgent need for the industry to modernise and upgrade itself technologically. The phasing out of quota restriction will be an opportunity as well as a challenge for us,8221; Rana said. Lauding the role of garment manufacturers for effecting a phenomenol growth in a short span of time, the Textile Minister said that with some 27 thousand apparel exporters, India has established itself as a force to reckon with in the international market.

The Textile Minister said that the threshold limit for availment of zero duty EPCG scheme has been lowered from Rs 20 crore to Rs one crore to boost export in the garment sector. With a view to facilitate access to duty free inputs, standard input-output norms for about 300 textile and clothing export items have been prescribed and the department of revenue has too extended the facility for duty free imports to fasteners and polywadding. The government has also reduced the interest rates on pre and post shipment credit from eleven to nine per cent for the remaining period of 1998-99.