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India, Kazakhstan to Enhance Textile Cooperation

Sunday 10 June 2012

(SME Times) – At the third meeting of the India- Kazakhstan Joint Working Group on Textiles at Gurgaon, officials from both side agreed for cooperation in wool and cotton sector including the technology exchanges. Kazakhstan will consider enhancing their imports of apparel and clothing from India and also source other textiles products from India. Indian side agreed to provide training facilities in the textiles sector.

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The Joint Secretary, Ministry of Textiles, Government of India, Shri V. Srinivas meeting the Kazakhstan’s Head of Light Industries Division, Committee of Industry, Ministry of Industry and New Technology of Kazakhstan, Ms. Natalia Komogortseva, at the 3rd meeting of the India- Kazakhstan Joint Working Group on Textiles, at Gurgaon, Haryana on June 07, 2012.
A cotton textile cluster, which is based on Ontustik SEZ was created in Kazakhstan for recovery and development of competitive environment in the textile industry. The main purpose of Ontustik SEZ is to create conditions for the development of textile and sowing industry, as well as to create prerequisites for a shift to production of value added competitive goods, which exempts the investors from income tax, property tax and land tax, customs duties up to 2030.
According to Ontustik SEZ development programme, the integrated service engineering centre (ISEC) is expected. It will train and improve skills of experts on newest equipment, researches, certification in compliance with international standards of textile products. The laboratory research centre is planned to be opened at ISEC for the purpose of research works and experimental production. By end of 2012, 15 textile industry enterprises are planned to be finished and about 11 new working places are planned to be created. The initial term of validity of Ontustik SEZ was fixed until 2015. However, taking into account the capital capacity of textile industry and consequences of economic crisis the term of validity was extended until 2030. In broad terms, operation of cotton textile cluster will promote rehabilitation and development of Kazakhstan textile industry.

The Indian side was headed by Ministry of Textiles Joint Secretary (Exports) V. Srinivas while the Kazakhstan side was headed by the nation’s Head of light Industries Division, Committee of Industry, Ministry of Industry and New Technology Natalia Komogortseva.

The JWC considered the issues at length like: incentives available for Textiles and Clothing sector for investment; development of textiles sphere of cotton and MMF blends, particularly through setting up of JVs in the SEZ Ontustyk, profile of Kazakhstan imports of textiles and clothing and its major source of such imports along with the investment opportunities in SEZ Ontustyk.

The issue of training to Kazakhstan nationals in various levels of textiles and clothing manufacturing traders was discussed in details. The JWC also discussed the training facilities available in the Kazakhstan and the bilateral exchange programmes that it has currently with other countries in the field of textiles and training.

After JWG meeting, a MoU between State Authority Directorate of SEZ Ontustyk B.R. Maulenov, and Apparel Export Promotion Council represented by H.K.L. Magu was also signed.

The MoU is focused on the exchange of information and knowledge and to promote development in the field of the domestic and international textiles, in particular manufacturing of the readymade garments. Both parties agreed to send their representatives in seminars, conferences, business forums and other events.

The next JWC meeting will be held in Shymkent in 2013.

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