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Fibre2Fashion
27-05-2025
- Business
- Fibre2Fashion
India's loom QCO faces industry pushback ahead of deadline
India is set to implement the Quality Control Order (QCO) for weaving machines (looms), their assemblies, sub-assemblies, components, and all types of embroidery machinery from August 28, 2025, following the expiry of a one-year gestation period. Just three months ahead of implementation, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) has demanded the removal of the QCO. It is worth noting that a notification was issued on August 28, 2024, regarding the implementation of the QCO on textile and embroidery machines and their components. The government had provided a one-year period for the industry to make the necessary preparations. India plans to enforce QCO on weaving and embroidery machines from August 28, 2025. The SGCCI has urged the government to withdraw the QCO, citing heavy reliance on imported machinery and potential financial losses. SGCCI argues that the regulation could hinder the textile sector's growth and technological advancement, particularly as India targets a $350 billion market by 2030. Recently, SGCCI vice president Ashok Jirawala and former president Ashish Gujarati presented the matter in a meeting with India's Minister for Heavy Industries, H D Kumaraswamy, and joint secretary Vijay Mittal in New Delhi. They pleaded for the removal of the QCO. The meeting was convened by the Ministry of Heavy Industries and attended by various industry organisations. SGCCI has formally urged the central government to remove the QCO from textile machinery, citing concerns about its potential impact on the sector's growth and technological progress. SGCCI representatives argued that India's current textile market is valued at $165 billion and is projected to reach $350 billion by 2030. To achieve this target, the industry will need approximately 4.5 lakh high-speed weaving machines, requiring an estimated investment of $15 billion. As several of these machines are not manufactured in India, imports are essential. SGCCI also noted that embroidery technology evolves rapidly, with machinery often needing upgrades every two to three years. Since many advanced machines are not produced domestically, Indian entrepreneurs rely heavily on imports. They, therefore, emphasised the need to exclude embroidery machinery from QCO regulations. Gujarati told Fibre2Fashion , 'Such textile machinery imports are essential as several types of machines are not manufactured locally. We are heavily dependent on imported machines. A large number of textile units have opened Letters of Credit (LCs) and booked machines from abroad. If the QCO is not removed and comes into effect on August 28, 2025, the imported machinery will be held at ports, resulting in significant financial losses. Furthermore, banks may hesitate to finance such ventures, potentially slowing industrial growth.' Gujarati further informed that following the presentation, Kumaraswamy and the joint secretary of the ministry responded positively and assured that the concerns of the user industry would be considered. Fibre2Fashion News Desk (KUL)
Time of India
26-05-2025
- Business
- Time of India
SGCCI seeks removal of QCO on textile machinery
Surat: Representatives from the South Gujarat Chamber of Commerce and Industry (SGCCI) recently raised concerns over the Quality Control Order (QCO) on textile machinery before the Union minister of heavy industries, H D Kumaraswamy, and senior officials of his ministry in New Delhi. SGCCI demanded the removal of the QCO on textile machinery, claiming it would adversely impact growth in South Gujarat. SGCCI representatives pointed out that the current size of the textile market is $165 billion, and it is expected to grow to $350 billion by 2030. For this growth, about 450,000 high-speed weaving machines will be required, necessitating an investment of $15 billion in machinery. Since some of this machinery is not manufactured in India, SGCCI gave a list of such machinery to the ministry. SGCCI emphasised that decisions regarding the QCO on textile machinery should be reconsidered with consultation from user industries. SGCCI vice-president-elect Ashok Jirawala said: "In the embroidery industry, each unit operates multiple embroidery machines. Every two to three years, new technology emerges, necessitating the replacement of old machines. However, these machines are also not manufactured in India, hence the industry depends on imports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like MBA in Business Analytics For Working Professionals. BITS Pilani WILP Apply Now Undo Therefore, a request was made to remove the QCO on embroidery machinery as well." The representatives pointed out that that many entrepreneurs had booked machines on a letter of credit and if these machines are delivered after Aug 28, 2025, their payments may get blocked, and the machines will not be cleared at ports. On one hand, entrepreneurs face blocked funds, and on the other, banks are reluctant to finance new weaving projects because modern weaving machinery still needs to be imported. Therefore, a renewed consultation with user industries regarding the QCO on textile machinery was demanded.
