International Textile

Ray of hope for surat textile industry

A few months back, the Surat textile industry was struggling to come to terms with the adverse effects of the economic recession. Several small units found it difficult to stay afloat due to the challenging economic conditions. Majority of the SME yarn and fabric processing units had to grapple with huge obstacles on both domestic and global fronts. However, the scenario is gradually taking a positive turnaround. The recent announcement made by the government to offer subsidy to the textile sector under the Technology Upgradation Fund Scheme (TUFS) has provided a breather to the Surat textile sector. Glimmer of hope The allocation of nearly Rs 300 crore for the Gujarat textile sector from the total sum of Rs 2,564-crore subsidy under the TUFS has already been able to turn around the state’s struggling textile industry bullish. “The Surat textile sector, which faced a consistent demand and revenue growth fall for most part of the last year, is now regaining its confidence due to the government initiatives and support measures. The TUFS subsidy will definitely prove beneficial for the small-scale units and may also result in more number of units being set up,” said Anuj Kabra, Proprietor of Aarti Enterprises, a small-sized yarn and synthetic dealer in Surat. Besides the TUFS subsidy, the government is also undertaking steps to enhance the competitiveness of the textile sector. Moreover, the sudden surge in inquiries and rise in order inflow have made Surat’s SME yarn manufacturing units upbeat about an early revival. “After a lull in the business for more than a year, we are now witnessing a demand surge in the domestic market for textile products. This has promoted us to hire additional staff and upgrade machinery to enhance production and meet the supply,” said J Atal, Proprietor of Raj Enterprises, a small-scale apparel dealer in Ahmedabad. Going by the indications, the worst might be over and a revival seems to be around the corner. A recovery will spell relief for not only the thousands of small textile companies existing in the state, but also for millions of workers engaged with the industry. However, SME Textile Manufacturers firms will have to exercise prudence with their investments and business decisions. For more detail on Business Directory log on to http://www.bizxchange.in