Overview: The total demand for textile machinery is estimated to be over 2.2 billion during 2007-2008 (April-March). Imports constitute approximately 75% of the total demand for textile machinery in India. In order to secure its global textile market share, the Indian textile industry needs to procure more modern equipment to help improve quality and productivity, thus enhancing global competitiveness. Given the obsolete or near-obsolete technology level in the Indian textile industry, especially in the weaving and processing sectors, large-scale importation of the latest technology is imminent. The Technology Up-gradation Fund Scheme (TUFS), launched by the Government of India, provides buyers a five percent reimbursement on the interest rate charged by the lending agency. There is no cap on funding under this plan. Technology levels are benchmarked in terms of specified machinery for each sector of the textile industry. Machinery with technology levels lower than that specified will not be permitted for funding under the TUFS.
Opportunities: Indian end-users continue to import the following latest textile machinery: auto cone winders; open-ended spinning units; circular knitting machines; flat and warp knitting machines; dry and wet pretreatment machinery; yarn dyeing machines; fabric dyeing machines; printing machines; water extraction machines; processing machines; finishing machines; testing and measuring equipment; laboratory equipment; software for design, data monitoring and processing (CAD/CAM/CIM); shuttle-less looms; and texture machines.