Once again, the Indian textile industry has come under limelight, thanks to a more active role being played by the new Union Textiles Minister, Mr Dayanidhi Maran. Mr Maran has already got into business, and seems to have successfully conveyed his strategies to the Finance Ministry. The languishing Technology Upgradation Fund Scheme's (TUFS) funds are likely to be raised from Rs 1,090 crore in 2008-09 to about Rs 2,000 crore for the current year, according to Textile Ministry officials. The backlog of Rs 1,400 crore interest claims is also being cleared, it is learnt. Well begun is half done, no doubt about that!

In the year the quotas were removed, Indian textile exports grew by 29%. The years that followed 2005 onwards, the growth started tapering off. It was 7% CAGR between 2005 and 2008. In 2008-09 it registered a 10% negative growth. Cotton prices in India which were below international prices until 2005 are 10% above international prices in 2009 and the duty drawback/DEPB has gone down by 40% since 2005. Things have gone from bad to worse towards the close the 2008. Indian textile industry is inherently competitive; over Rs 75,000 crore has been invested in the last 7 years. Except India all other Asian economies have increased their market size and share even during this period. The Governments of these countries have lent their support. China has raised its drawback from 12% to 17%. Pakistan has chipped in with an R&D rebate of 7.5%. Bangladesh which enjoys zero import duty into EU has started successfully luring large investments from China and South Korea and is rapidly expanding its exports. Vietnam which has competitive costs is also benefiting from Chinese and Korean investment and is charting a rapid growth. Bangladesh has exceeded Indian garment exports and very soon, Vietnam too is set to exceed India. The neighbours, who were once admiring India, are themselves showing exemplary performance now.

No doubt, Maran will not like the industry and the Government to sit & watch the neighbours bask under the sunlight of revival, while they themselves will be only trading charges. Will the 100-day mantras of his Government work out some miracles for the textile industry too?