ET & other papers carried great news, that the vibrant, beautiful Indian textiles industry had become internationally competitive, increasing market share globally, attracting FDI, and benefiting from the domestic Technology Upgradation Fund Scheme (TUFS).
This proves that targeted joint industry-State action, especially one which focuses on technology upgradation, can yield great results. It also belies the contention that India is failing to develop along its comparative advantage vector, which is what the East Asian and South East Asian economies have done, according to the former World Bank Chief Economist Professor Justin Yifu Lin, who has returned to China to be the Honorary Dean of the National School of Development, Beijing University, and the founding director of the China Center for Economic Research, where I met him. The CAF strategy (Comparative Advantage Following) strategy yields better results in economic growth, employment and rising standards than a top down CAF denying one.
Question: How many of our WB/ IMF dudes have returned to mentor the younger generation?
“In the last ten years, India’s textiles industry has grown by leaps and bounds. In the last ten years, the textiles industry has received foreign direct investment of Rs 5,883 crore. Besides this, the industry has attracted investments of Rs 2.53 lakh crore from the government in Technology Upgradation Fund Scheme (TUFS) in the last 15 years. The most important change in India’s textiles industry has been the advent of man-made fibres. Due to its various range of man-made fibres, India’s textiles industry has become lucrative for western markets. Interestingly, India has become a competitive market as regards raw materials in the last ten years. It is gaining high global market share as against equally competitive countries such as China, Bangladesh and Thailand….”