Exports to pick up soon: Maran

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New Delhi: With almost 70% recommendations of textile ministry accepted by the finance ministry, the textile minister Dayanidhi Maran on Tuesday expressed confidence that these initiatives will restore export growth, spur modernisation and attract investment in the sector.

Hailing the Budget proposals for the sector, he said that he is proud that handlooms have been recognised for their role in providing employment as well as an instrument to preserve the magnificent and ancient textile traditions of the country.

For this, finance minister announced the setting up of five mega clusters, one handloom mega cluster each in West Bengal and Tamil Nadu and one powerloom mega cluster in Rajasthan and two mega clusters for carpets at Srinagar and Mirzapur.

These clusters will generate employment for 50,000 persons and attract an investment of Rs 1,400 crore.

Under the Market Development Assistance (MDA) Rs 124 crore has been allocated for apparel exporters for identifying non traditional markets such as Japan, Russia , Turkey South Africa, Braziland Argentina.

All these initiatives taken by the government are expected to spur industry’s growth to about 7% from the current the negative one over the next five years.

When asked about the increase in the disparity between natural fibres and Man Made Fibres (MMF) because of the hike in excise duty from 4% to 8% in the Budget reducing the latter’s profitability, he said, certain anomalies for some segments still remain which he would try to correct in consultations with the finance minister after Parliament session is over.

Maran further said the Budget proposals should be read with two stimulus packages announced by the government last year to boost growth. In the Budget 2009-10, plan allocation for the sector has been enhanced to Rs 4,500 crore from Rs 4,090 crore last year.