Assocham: With reforms textile sector can touch $100 bn post-MFA
New Delhi: The Indian textile sector has the potential to touch $100 billion by 2010 in the post-MFA (Multi-Fibre Agreement) period provided reforms were initiated in the textile sector and adopted by manufacturers, says a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham).

The study says that with reforms effected, the Indian textile and apparel sector will also be poised to create 10 million jobs opportunities, of which 5 million could be direct jobs and with the same number created in textile-related allied sectors. The study warned that in case the reforms were not effected, China and Pakistan would capture India's global textile market share of 4 per cent and its 3 per cent share of apparel. Therefore, India needs to introduce massive reforms and modernisation drive for its textile sector. The chamber has suggested a 5-pronged strategy to the Government to improve the competitiveness of domestic textile sector.

The strategy includes reform of local markets in order to attract foreign direct investment, implementation of VAT, flexibility in labour laws, and amendments to help free outsourcing to promote investment in labour-intensive and export-oriented garment sector.
Back to News Review index page  
Govt. considering setting up thirty SEZs as mini-Shanghais
New Delhi: The government is planning to develop 30 mini-Shanghais in India, through the Special Economic Zones (SEZs), which will be set up to boost exports across the country.

But NRI resource managers like Pepsico's Indira Nooyi and Victor Menezes of Citigroup, have apparently made their own suggestions to Prime Minister Manmohan Singh. These experts have apparently recommended that the number of SEZs should be reduced to just 10, instead of the 30 as planned. The NRI team wants each economic zone to be centred around one big investor. If the Korean steel giant POSCO invests $1 billion in Orissa then it should be given its own economic zone, where all manufacturing would revolve around what POSCO makes, is the suggestion made by these experts.

The government would also need to make sure such industrial townships are well connected, specially to ports. But if the government agrees to cut down the number of SEZs to just 10, it might start off with more industrialised states. These might include states like Gujarat, Maharashtra, Karnataka and Tamil Nadu, so that it doesn't have to start building infrastructure from scratch.

The NRI team says flexible labour laws will attract investors to states which can take the hard political decision of making investor friendly labour laws.
Back to News Review index page  
Asian soaps and cosmetics meet to be held in Goa
Mumbai: Goa will host the first Asian Soaps, Cosmetics and Detergents conference scheduled for March 13-16. Organised by Oil Technologists Association of India (OTAI) - Western Zone, the conference is intended to provide a platform for regional players to share knowledge and resources.

Organizers point out that participation of representatives from the industry in SAARC, ASEAN and North East Asian countries is expected to boost regional cooperation. They added that the technical sessions would cover commercial, environmental and regulatory issues, the marketplace and raw material scenario, and engineering technology. The strong growth in the consumption of soaps, detergents and cosmetics and the potential for further growth, given the continual rise in incomes and population in the Asian region, have made the industry vibrant.

A buyer-seller meet has also been organised, OTAI said.
Back to News Review index page