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.
