Any move to discontinue the technology upgradation fund scheme (TUFS) for the textile sector beyond March 2007 would lead to the collapse of investment plans drawn by the textile industry for the 11th Plan period.
Such a move may also erode the competitive edge wielded by the Indian textile sector in the global market because different free trade agreements signed by the country are expected to come into force only during the period, according to Southern India Mills Association (SIMA), the apex textile trade body.
Expressing apprehension over recent media reports suggesting that the Union Government is not keen on giving an extension to the operation of TUFS beyond March 2007, when the tenure of the scheme would expire, the SIMA Chairman, Mr S.V. Arumugam, noted in a communication that revival of the domestic textile industry took shape since 2003 due to Government's proactive measures such as fiscal policy changes, low interest regime and thrust for modernisation under TUFS.
Consider the reference to FTA. This in effect means, let Indian tax payers subsidize what foriegners buy, is it not?
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