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National textile hub likely

Font Size:big - mid - smallehangzhouhengke   Release time 08-03-26 17:06     view:1285   coomment:0   source:tradeindia communities

The government is planning to set up a textile hub called ‘Textilpolis’, which would align the efforts of different export promotion councils (EPCs) and build industry database.An SPV, to be set up to run the hub, would be the apex body overseeing the promotional efforts for the sector and advise the government in policymaking.

“At present, there is no integrating force that brings in a coherent policymaking for the entire textile chain,” said a government official explaining the need for such a hub. There are 10 export promotion councils for different segments of the textile industry such as apparel, silk and wool.

“Many a time they work at cross purposes trying to take away business from each other,” the official said.

The Textilpolis is expected to address this. “The effort would be to get the highest realisation for our products,” he added.

This means the apex body would align each segment’s interest with the overall objective of enhancing India‘s textile exports.

Industry observers feel that Textilpolis may be able to address the lack of coordination among different EPCs, but would do little more than that.

“Textilpolis would be like a super EPC and may not do anything more than what other EPCs are already doing,” the head of a leading textile association said.

An SPV called ‘Council for Trade and Manufacturing in Textiles’ would be incorporated to run Textilpolis. It will have membership from manufacturers, traders and associations from across the value chain, including accessories and machinery manufacturers. The aim is to give representation to all stakeholders.

The goverment will provide a lumpsum grant for a maximum of Rs 300 crore to the SPV, beyond which the latter will have to raise on its own for initial or recurring expenses. The council will be formed as soon the proposal gets nod from the Cabinet.

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