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'Lowered Incentives Have Hurt Exports'
The Dollar Business
|October 2017
The decentralised powerloom sector is the backbone of India’s textile business. It not only contributes about 60% to India’s fabrics export, but also provides employment to over seven million people. The Dollar Business caught up with Purushottam K. Vanga, Chairman of Powerloom Development and Export Promotion Council (PDEXCIL), to understand what the Council is doing to boost exports from the sector.
TDB: How has the sector been performing over the last couple of years?
Purushottam Vanga (PV): The power loom sector produces fabrics like cotton, polyester, rayon, etc, as well as blended fabrics. Although the sector is mostly decentralised, it contributes about 60% to total fabric exports from India. Until the Foreign Trade Policy 2015-2020 modified the schemes and reduced certain incentives, exports from the sector were constantly growing. The current trend isn’t encouraging, but I am hopeful that with the support from the government and intervention by EPCs, sectoral growth will take a positive turn.
TDB: How is Powerloom Development and Export Promotion Council (PDEXCIL) helping its members?
PV: Since 1995, PDEXCIL has been helping its members by conducting seminars and workshops for weavers, small entrepreneurs, etc., to make them aware about various government schemes, the export scenario, etc. The Council also organises activities such as international buyer-seller meets, reverse buyer-seller meets, etc., to encourage small powerloom operators to export. In fact, through these activities, 109 small producers have forayed into exports.
Additionally, the Council helps its members participate in both international and national trade fairs at a highly subsidised rate. Other than that, encouraging members to upgrade their technology, marketing powerloom products and addressing sectorial concerns by taking them up with the concerned authorities are some things that the Council does on a regular basis.
TDB: In April 2017, the government launched PowerTex India scheme. Can you tell us more about the scheme?
This story is from the October 2017 edition of The Dollar Business.
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