New Delhi, Aug. 31: The government plans to promote local textile brands abroad and clear the new technology upgradation fund scheme soon, according to commerce minister Kamal Nath.

At a textile conference here today, the minister said these steps were necessary “in view of the large growing domestic market and to face the challenges in the international market”.

He said his ministry was exporting the possibility of getting supporting for the textile sector from India Brand Equity Foundation. The foundation is a public-private partnership between the commerce and industry ministry and the Confederation of Indian Industry. It aims to present the India business perspective and leverage partnerships in a globalising marketplace.

Nath said that with globalisation, the country would have to confront challenges posed by new competitors such as Bangladesh, Cambodia and the Central American countries. The industry and the government need to jointly draw up strategies to face this competition.

The Union cabinet is also likely to clear the revised technology upgradation fund scheme within a fortnight. When the scheme takes effect, more small and medium textile enterprises will be eligible for interest subsidy.

The textile ministry wants Rs 11,000 crore to run the scheme for five years. Launched in 1999, the scheme provided a five per cent interest subsidy and became popular after the phasing out of quotas by the World Trade Organization.

Lobbying by the commerce ministry and trade associations has led to the scheme getting extended to the Eleventh Five Year Plan. The ministry. The ministry has set an export target of $25 billion for the current fiscal against $19 billion in 2006-07.