New Delhi: In order to strengthen the domestic textile industry, the Central government is planning to open 25 new textile parks across the country.

A final decision in this regard would be taken in next 10 days. Meanwhile, deliberations are underway to resume duty draw back on cotton exporters.

Union Minister for Commerce & Industry and Textiles Anand Sharma held a meeting with various textile exporters to discuss the problems faced by them and look for a pragmatic solution.

Commenting on textile parks, he said there are 40 such parks presently and 25 more parks will be soon set up in industrial areas.

“The proposal is ready and the private sector is expected to invest Rs 5, 000 crore in the textile parks. This will also provide employment to many people,” added Sharma.

The issue of falling prices of cotton yarn in the domestic market was also discussed during the meeting.

According to experts from the industry, due to the downward trend in the domestic market, the traders were incurring heavy losses in exports. And due to increase in interest rate, the cost of exports had also shot up. As a result, the Indian textile was unable to compete with their counterparts from Bangladesh and Pakistan.

In this view, the exporters are demanding revoking of textile export duty draw back. The Union government had withdrawn the duty draw back in 2010.

While speaking with reporters, Sharma said, “I will recommend the Finance Minister to resume the duty draw back on cotton exports from April 2011.”