Letter from Editor-in-Chief
Dear All,
As the chairman, has rightly summarized the year full of highs and lows, we have had quite an eventful end to this year. While globally Donald Trump was in the limelight because of his unexpected win, Mr Narendra Modi's demonetization move remained in the news here in India.
India is now a fast-emerging market inching to reach half a billion middle income population by 2030. Several such factors are good for the Indian textile industry in the long run. Even though the global economic crisis seems to be worsening day-by-day, as long as economies are emerging and growing as in South and South East Asia, the textile industry is here to grow, provided it takes competition and innovation seriously.
By 2022, the Indian government is likely to increase 67% disbursal of textile fund. The government had initially estimated disbursal of Rs 18,000 crore under the Technology Funds Scheme (TUFS) but with increasing interest from the textile industry and the opportunities that lie ahead, the government is now looking to disburse textile funds of around Rs 30,000 crore under ATUFS scheme by 2022. The amount marks a 67% increase in disbursals from its original plan.
The government also wants to bring the Indian textiles sector at least at par with this industry in Vietnam, Cambodia, Bangladesh and Pakistan for larger global market access with low cost of manufacturing. The ministry is in the process of finalizing guidelines under the A-TUFS, which will be announced by the end of the current month. The textile ministry has already notified A-TUFS early this year. Under this new scheme, all new units in the textiles sector would be facilitated with the benefits. Existing units interested in upgrading their technology would also avail the benefits of this scheme.
India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from last year. According to a World Bank report, Singapore topped the list in the World Bank annual report 'Doing Business 2016'. The World Bank said India, which has a global ranking of 130, implemented two reforms during the past year. For example, in starting a business, India eliminated the requirements for a paid in minimum capital and a certificate to commence business operations, significantly streamlining the process for starting a business. A forward movement of 12 spots in the ease of doing business by an economy of the size of India is a remarkable achievement.
Improving India's ease of doing business ranking has been a focus area of the Narendra Modi Government since May 2014, and its efforts came in for praise. The potential for rapid economic growth in India is very high, India has very favourable demographics, and to the extent that some of the bottlenecks that the Doing Business data identified in India are removed, the potential benefits could be quite large.
Having said that, we are in a position to flourish, excel and improve in what we do. Let us reinforce the ethics and values that we have been pursuing ever since our association with the LNJ Bhilwara Group. My very best wishes of the New Year 2017 to one and all.
With Best Wishes,
Sudhir Sood