Despite rising cost of inputs, Gujarat government is expecting to attract Rs.100 billion MoUs in Gujarat textile sector at the 2009 Vibrant Gujarat Global Investor’s Summit. This time, Gujarat government will try to attract textile machinery producers to set up plants in the state. Chandan Chatterjee, general manager, iNDEXTb said that machineries produced in East Asia had lower price. As the cost of inputs in the textile industry had risen, the main focus of Gujarat government was to bring in machineries at lower costs. Domestic machinery producers will get relief in import duties and other costs.
Business Standard reports:
According to him, the state will market itself as an investment destination offering all kinds of help for setting up cost-effective manufacturing facilities. "While countries such as China and Korea may be equal or better in terms of infrastructure, we are ready to provide all kind of facilities to them at cheaper cost," he said.
The summit will also feature a buyer-seller meet for the textile industry and the state government is luring some international brands such as Marks & Spencer, J C Penny and Armani.
"The government intends to develop quality standards of the domestic textile market. The presence of international brands will motivate domestic manufacturers to go for better quality. Brands such as Marks & Spencer, J C Penny and Armani do source from India, especially from the Gujarat market, but there are hardly any technological collaboration between these brands and domestic players. We hope to see many of these brands even set up their offices in Gujarat instead of Mumbai," said Chatterjee.
The Vibrant Gujarat Global Investors’ Summit is a major business event organized after every two years to attract foreign investors in Gujarat. First observed in 2003, the Vibrant summit has been playing a major role in attracting foreign investors in Gujarat. In the 2007 vibrant summit, Gujarat observed MoUs worth Rs. 85 billion, 85% of which are under implementation or commissioned already.
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