The textile sector urged the government to implement the Rs 2,500-crore technology upgradation fund and provide export credit at competitive rates. Devarajan said that need of the hour was to concentrate more on the weaving and processing sector so that the capacity generated in the spinning sector cuold be used indigenously to produce more value-added items. Calling on exporters to concentrate on the inherent strengths of the Indian textile sector to improve their performance, Devarajan said that there was a constant needto sharpen managerial and other skills. The industry is in a stagnant state with most of the exports taking a beating. Cotton yarn exports, for instance, have been hit by the crisis in the south-east Asian nations. India's cotton yarn exports to this region will be around 49 per cent of the non-quota exports and these markets constitute about 22 per cent of the total cotton textile exports from the country. Another blow was delivered by the United States, which has found new sources of supply for its needs through special tariff arrangements.

He voiced concern over the European Union's move to impose restrictions on Indian exports on meaningless grounds.