NEW DELHI: The Indian textile sector continues to suffer from ageing machinery, rigid labour laws and inadequate power and port facilities, the finance ministry’s annual survey said on 27 February.
The economic survey for 2006-07 presented by Finance Minister Palaniappan Chidambaram in Parliament said the textile sector’s performance continues to “lag substantially behind China even in the post-quota era.”
Textile units have demanded reformation of the labour laws to allow contract labour for a few months without a compulsion to absorb them permanently.
The textile technology upgradation scheme (TUF), a federal scheme that offers 5% interest subsidy for expanding textile firms, and a scheme to integrate textile parks should address some of these problems, the survey said.
Loans worth Rs14.9 billion have been sanctioned to 6,739 applicants under the TUF scheme since 1999, it said.