The textile mills and machinery industry have performed staisfactorily during the three-year period, 2004-05 to 2006607. But the working of the textile industry during the last one year has been adversely affected due to steep appreciation of the Rupee, increase in interest rates, rise in cotton prices despite a bumper crop, increase in the cost of power and acute power shortage and economic slowdown the world over. Under these circumstances, textile industry is cUlTently shying away from investment in plant and machinery. The mills are waiting for normal conditions to emerge to resume investments and since fOitunes of both textile industry and machinery industry are closely intertwined, the machinery industry is also facing a dip in the demand, declared a leader from textile mills at a recently concluded meet of the Federation of Indian Textile Engineering Industry (FITEI). While the machinery industry raised its concerns over the mounting import, mill sources clarified that the textile industry has no special fascination for imported machines. However, they made it abundantly clear that if indigenous machines of latest technology at competitive prices are not available in the country, the user industry will unhesitatingly prefer the imported ones. It is obvious that the indigenous spinning machinery industry has successfully achieved self-sufficiency within the country. It is no secret why the same level of success has not been realised in other fields like weaving, processing and finishing. 

The machinery industry should pay more attention to R&D activities. So far, they have been only on paper. Except for a few 11lachinery makers, most of the machines supplied are of a decade old technology as compared to international suppliers. Some of the reputed multinational companies are planning to set up their plants in India for manufacture of textile equipment, which should be encouraged by way of additonal incentives from the Government since this will spur healthy competition in the domestic market. Domestic machinery manufacturers must also organise regular dialogue with their customers at micro level with the objective of improving specific areas of technologies. Textile machinery industry and user industry are still not united completely in purpose. Without this happening, the cost factor, a major issue for the mills cannot be brought under control.