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The Indian Textile Journal - August 2007 Viewpoint
Some Twists in Spinning

A CRISIL Vision Study, carried out on behalf of the Confederation of Indian Textile Industry (CITI), has set a target for spun yarn production, envisaging it to expand from 3.39 billion kg in 2006 to 6.60 billion kg by 2012. To achieve this target 29 million spindles will be required - 20 million spindles for expansion and 9 million for modernisation. Total outlay for 29 million spindles is estimated at US$10.22 billion. Indigenous machinery industry is currently able to supply around 2.5 million spindles. Thus domestic production of spindles is inadequate to meet the industry's requirement. This is the reality, despite India often bragging that it is on top of the world in yarns. 

Between 2000 and 2005, world's installed spindles increased by 35 million from 157 million in 2000 to 192 million in 2005. As per International Textile Machinery Shipment Statistics published by ITMF, during 2005, spindles decreased in South Korea, US, Japan, Italy, Turkey, Egypt and Taiwan. On the other hand, capacity expanded in China and India. China and India considerably invested in creation of larger capacity in 2005. Number of rotors increased marginally from 8.28 million in 2000 to 8.39 in 2005. Spinning sector has been progressively shifting to Asia. About 80 per cent of world's spinning capacity is now in Asia. Four Asian countries of China, India, Pakistan and Indonesia account for 70 per cent of spinning capacity of world. In 2005, world production of cotton yarn was estimated by ICAC at 25,000 million kg. China's share in total production was around 50 per cent. India's share was just 10 per cent. Spinning capacity in India has increased from 26 million spindles and 19,300 rotors in 1986 to 39.40 million spindles and 603,000 rotors as of October 2006. As per a Gherzi study only 27 per cent of installed spindles in India are of less than 10 years of age. Similarly, only 31 per cent of rotors are less than 10 years. This underscores the imperative need for clearing huge backlog of modernisation of spinning sector in India. 

To tide over this problem, it is essential to strengthen domestic textile manufacturing base and encourage FDI and joint venture projects for additional production of spinning capacity in India. Cost of investment has to be brought down by rationalisation of fiscal levies on textile machinery. Let us not forget there are some twists to be straightened out in spinning..

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