The latest indication that in dollar terms India has reached the same level in this quarter (Oct-Dec) as compared to the corresponding period last fiscal, reveals that ‘there are only minor hiccups’ in the textile sector due to rupee appreciation, Textile Secretary A K Singh said here.

Minor hiccups

The minor hiccups has been taken care of by the government with certain incentives and concessions, he said.
Further, Mr Singh pointed out that “for a country like India, which was not export-driven, the rupee appreciation was indeed good.”

Mr Singh, however, added that the export-driven sectors, like apparel was feeling the pinch of the trend.
A recent survey by RBI has revealed that the profit margin of the textile sector was only 5.92 per cent, indicating that the situation was manageable, he said.

Three point plan

The Centre would take a three-pronged approach to tackle the issue confronting the textile sector, he said, adding that in short term measures, the government would provide incentives and concessions to safeguard the interests of the sector.

It would be to improve production and quality and long term measures included setting up of Integrated Textile parks, he said. On Technology Upgradation Fund, he said that of the total Rs 86,000 crore sanctioned, Rs 46,000 crore were sanctioned in 2006-07 alone.