Textile units want a speedy disbursal of subsidies under the Technology Upgradation Fund Scheme. They say projects started during the blackout period set for TUFS – June 29, 2010 to April 27, 2011 – too should be considered for payment of subsidies.

Entrepreneurs want removal of the hank yarn obligation, which according to them is a major deterrent for growth and economic viability of textile mills. This age-old stipulation mandates units to produce a minimum 40 per cent of the yarn as hank yarn. Due to this, there is an excess production of hank yarn as consumption of the yarn has come down because of the growth of the power loom sector. And hence the rule should be scrapped, they say.

India’s textile sector is one of the oldest industries in Indian economy. It is one of the largest contributors to India’s exports with approximately 11 per cent of total exports. The industry’s export earnings grew by 5.4 per cent in 2014/15. The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. The organised apparel segment is expected to grow at a compound annual growth rate of more than 13 per cent over a 10-year period.