EVEN as investments in the textile sector are flying out of Karnataka, the state government is giving finishing touches to a new textile and clothing (T&C) policy, and is planning to pump in Rs 500 crore to boost the sector.
These investments will go into capacity building initiatives. Karnataka texile development commissioner Ashok Kumar Manoli said, “we intend to create a talent base of five lakh persons who can be employed by these units. The policy will also focus on dispersing the growth of textile units to other parts of the state with special emphasis on rural areas. Our aim is to stimulate, maintain and prepare the industry for the next phase of growth.”
Speaking at the FICCI-FKCCI round table on ‘Tariff & Non-tariff Barriers in the Textile Industry,’ Mr Manoli said, the Indian T&C sector had to brace itself for greater competition coming in from countries like China and Bangladesh.
Sounding a note of caution, he said, the pace of growth of apparel exports from Bangalore was expected to slow down this fiscal. “In FY07, we recorded a 62% year on year growth but this fiscal, the growth would be muted,” he said.
The rise in the rupee against the dollar has already dented the bottom line for many apparel exporters in India.