Inaugurating the 24th India International Garment Fair (IIGF) here today, Rana urged the garment manufacturers to explore the possibilities of offshore investments to access locational and other advantages of third countries.

He said his ministry and government would extend all possible co-operation and help in achieving the nine billion dollar export target set by the Export Promotion Council for the garment industry.

It was imperative that the garment industry recognised the need to move up the value chain through product diversification and development of high-value products, the minister underlined.

Rana noted with satisfaction the performance of the apparel industry in the past years and informed that the exports of readymade garments for the year 1999 reached $5.323 billion, which was over 14 per cent of the country's total export earnings.

He said India's share in the world market in garments has gone upto 2.75 per cent in 1999 from 1.5 per cent in 1980.

The textile minister said that the industry needs to adopt vigorous marketing strategies to maintain and further increase its growth in view of the imminent opening of the textile sector by 2004.

He reassured the government's resolve to assist the garment export industry to revitalise itself and commitment to speeding up the reform process and developing stronger infrastructure.

The industry, Rana said, should not only be cost effective, but also yearn to achieve higher standards of productivity and quality in order to meet international competition.

Speaking on the occasion, the guest of honour, minister of state for textiles GN Ramachandran said that after the phasing out of quotas by the year 2005, demand for products will depend entirely on competitiveness and quality. India would not only have to face competition from the traditional rivals like Hong Kong, China and South Korea but also from new entrants like Thailand, Indonesia and Bangladesh.

Listing out the various initiatives taken by the apparel export promotion council, the minister said the apparel international mart is under construction at Gurgaon showrooms would be given to garment exporters from all over the country in the mart for exhibiting their products before international buyers.

He said the government has recognised the garment industry as a thrust sector for exports and continuously given its unstinted support and encouragement with the necessary policy inputs.

Textiles secretary Shyamal Ghosh, who presided over the function, said that it was important to analyse strengths and weaknesses of the industry in the context of the regional trading agreements coming up and explore offshore opportunities.

Ghosh said, ``once we build up our brand image and design capability, with our comparative advantage we could easily have a global presence and become transnational corporations in the textile sector both physically and in terms of products.''

The lack of awareness of the technology upgradation fund scheme is a big hindrance in the garment sector as many exporters are lagging behind in modernising their units, finance for which could be obtained from the fund set up by the government, he said and added that AEPC should inform the garment manufacturers about this facility.

He said the new textiles policy will be presented in coming budget session. The foreign direct investment policy has been further liberalised and the industry should make use of it.

AEPC chairman Raju Goenka said the industry will be in a position to achieve a substantial growth in the new millennium and can increase its share from 2.6 per cent to at least ten per cent in the world trade garments.

He demanded that the fabric manufacturers should be allowed to import fibres/yarms which are not produced in India, on duty free basis and the garment exporting units should be allowed easy and duty free import of basic raw materials and machinery so that it is not left behind in the race to be the first few in the world trade in garments.

Goenka also asked for a more encouraging labour policy and certain relaxations relating to regulation of contract labour, establishment of labour reconciliation machinery and declaring all garment exporting units which export at least 50 per cent of their turnover as ``public utility service.''

The IIGF is organised by the AEPC, an apex body sponsored by the government, in collaboration with the four major garment exporters associations including Apparel Exporters and Manufacturers Association (AEMA), Apparel and Handloom Exporters Association (AHEA), the Clothing Manufacturers Association of India (CMAI) And the Garments Exporters Association (GEA).