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  Recommendations ã  It has been found that one of the major cost components in the production is the energy consumed during the production process that offsets the competitiveness of the sector. It is therefore suggested that the option of subsidizing unit rates of power or encourage the use of other viable options such as non conventional energy  sources. ã There is a need to strengthen the availability of energy/power for the manufacturing units since the power outages are quite frequent. In view of such bottlenecks there is need for developing dedicated/captive power generating sources specifically for the major textile clusters. This necessitates the involvement of state level agencies,  private partners, etc., to work out initially as a viable project on pilot basis for replication at a large scale. ã Other options could be to bring in other alternate sources of power supply systems  such as renewable energy etc. Various financial incentive schemes are currently available for such applications. ã Though textiles and garments sector are already getting the benefit of various developmental schemes specifically in the SME sector, it is facing major threat from other competing countries such as Bangladesh, China etc., there is a need to further  support the textile and garments sector. ã Vocational training through ITIs, Textile Design & Management Institutions  specially in the area of Apparel Manufacturing, Quality Control and Designing needs to be encouraged so that skilled work force is available. Productivity & Competitiveness of Indian Manufacturing  –   Textile & Garments Sector National Productivity Council, New Delhi | Page No. v ã  Inter-state tax regime has to be simplified for textile goods movement as truck waiting time at each barrier is too long due to entry tax etc, increasing transit time which ultimately results in avoidable additional costs and burden to the buyer/ consumer. ã Quality and cost of production are the key factors for sustaining in the Post liberalization and free trade regime. Technology is critical, therefore, modernization of the units and up gradation of technology is imperative. Both advanced as well as indigenous technology needs to be integrated in the system. ã Since the manufacturing units are working on thinly spread margins and the cash  flow is a major constraint for majority of the manufacturing units, there is need to work out time bound refund mechanisms from Technology Up gradation Fund (TUF) provided by Government for the modernization of the units. ã  In order to offset the loss of international competitiveness of the Indian Textile and  garments sector due to the exchange rate fluctuations, Government needs to carry on with reimbursement schemes such as duty drawback, market development assistance etc., on a continuous basis. ã Since the future of the textile and garments sector is based on the production and export of Apparels, there is a need to focus on the development and growth of this  segment of the sector. ã  Existing support measures available to textile garments manufacturers and traders  for attending, showcasing and publicizing Indian textile and garments at the international trade fares and exhibitions needs to be strengthened.  ã  Regulatory function of the concerned government Ministries, Departments, State Government need to be focused on controlling raw material exports with a view to ensure stable yarn prices in the country and to make the sector more competitive and productive. ã Since the handloom sector is a major employment and export earner, it is in the interest of the Indian textile industry that support measures are urgently introduced  for the survival and growth of the handloom sector. ã Since Total Factor Productivity (TFP) contribution is relatively stagnant there is a need to encourage more of technical innovation through better design, technology, diversity of production etc. in the production process. ã Since design is a critical ingredient in the fast changing textile fashion technology, the existing textile design centers need to be strengthened and more such institutes need to be opened, especially for the support of textiles and garments sector.  
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