The Ministry of Textiles and the Textile Industry conducted a brainstorming session to discuss the falling trends of Indian Textile Exports, in the context of appreciation of external value of Indian Rupee. Naturally the Textile Millers expected some sops.
Shri Rangarajan advised them to use the appreciation of Rupee as an opportunity for importing modern machinery and technology. A la the IMF way, he found some structural disabilities in the textile industry's functioning.
FOR THE SAKE OF CLARITY ADDED ON SEP 2 2007:
The following problems P1 to P6 and solutions S1 to S6 are this blogger's views. These are not the views of Dr. Rangarajan.
--o00o--
The Economic expert does not discuss the real problems of the textile environment in this country, like a seasoned bureaucrat.
PROBLEMS
P1. Half the people of this country do not have money to buy two pairs of shirts and trousers for males, or two sarees for females. (It forced Mahatma Gandhi to move like a half-naked fakir).
P2. Thousands of weavers in the country die of starvation, but the Economic Advisor is not worried.
P3. The economic adviser is worried about the withdrawal of safeguards in the textile importing countries.
P4. Powerloom sector is also facing crisis.
P5. China dumps its textiles into India indiscriminately.
P6. Indian lifestyles have changed. In spite of giving good rebates/discounts/subsidies by the Government, the people are not likely to buy Khadi/handloom goods. It is a hard reality and harsh truth that handloom/khadi textile sector has to die slowly.
NOW, DISCUSSION OF SOLUTIONS
S1. Mill Sector should absorb the handloom/khadi workers by training them. In case of very old untrainable workers, Mills should contribute to a Pension fund and pay SUBSISTENCE to the starving. Mills make profit at the cost of weavers, hence they have a corresponding duty to feed them.
S2. Govt. has a duty to protect the Mills by banning textile imports from China.
S3. Notwithstanding what the WTO or GATT or some other multilateral agreements may say, the Govt. must ban textile imports from all countries.
S4. The Govt. should buy all the cloth produced by domestic mills and sell to the poor Indians at cost price + reasonable profit.
Dr. Rangarajan should first serve the Indian poor, Indian weavers and domestic mills. His duties to the WTO and IMF can be performed later.
2 comments:
These comments attributed to Dr. Rangarajan aver very shocking. If these were true, one would like to know whether he is qualified to be called an economic expert.
These comments show that he does not know the textile market, and the Indian textile industry.
To: Centre for Handloom Information and Policy Advocacy: For the sake of clarity, I wish to add that the problems P1, P2 etc. and Solutions S1, S2, S3 etc. listed by me above are my personal views. They are not of Mr. Rangarajan.
Now, I furnish below a link to the speech of the Prime Minister at the Valedictory Function of the Textile Millers Meet. http://pib.nic.in/release/release.asp?relid=30799.
Excerpts from the speech: "It is a misnomer that handlooms have a bleak future. In fact, as incomes rise, handlooms can carve out a niche space for themselves, generating better returns for our weavers. The challenge is to improve them technologically, to provide greater design inputs and to have improved marketing channels. Private industry can be a major partner in enabling this transition of handlooms from low value to high value products. The Ministry can work out appropriate Public Private Partnership models for enabling this transition. "
This blogger's comments: This part of PM's speech for the handloom sector is only a lip-sympathy filler. He wants the handloom weavers to wait with starving stomachs till the incomes of the people rise and they have the capabilities to buy handloom goods. He wants the Private Sector to make them technologically uptodate. Will they do? In the meantime, if the weavers die?
The PM speaks of billions of Dollars. Excerpt:
" ... In addition, I am told that the Ministry of textiles plans to create Investment Regions for the Textile Sector. The phenomenon of agglomeration is quite visible in textiles. Such investment regions can reduce transaction costs and enhance competitiveness. Concentrated, contiguous regions with high quality infrastructure and covering the entire value chain can help obviate, to an extent, the burden imposed by multiple levies, high power costs, bottlenecks in shipment and delays in legal clearances. They can become textile hubs with billions of dollars of investment - both domestic and foreign. Developing such regions in a Public Private Partnership mode will enable leveraging of government investments in these regions. The Ministry should finalise this proposal at the earliest. ..."
This writer's comment: We can see the PM's eagerness for the Investment Regions -- to pump billions of dollars. Naturally, there will be gifting away of agricultural lands to the industrialists both domestic and foreign. There will be abundant tax concessions and more sops to them.
But the poor weavers will have to wait, because there is nobody to lobby for them.
Post a Comment