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Textile industry to invest $31 billion by 2010
Wednesday, 15 December 2004, 20:30 IST
NEW DELHI: The Indian textile industry will invest 
1.4 trillion ($31 billion) over the next 10 years to double the country's share in global trade to eight percent following the phasing out of the quota regime from Jan 1.
This was indicated during a presentation to Commerce Minister Kamal Nath and Textiles Minister Shankar Sinh Vaghela on the preparedness of the industry in the new quota-free dispensation, an official statement said Wednesday.
A Vision 2010 document prepared by the government envisages that the Indian textile industry will grow to $85 billion by 2010 from the current level of $37 billion, creating some 12 million new jobs. Exports are targeted at $50 billion.
"The mood in the Indian textile industry, in anticipation of the phase-out of the quota regime of the multi-fibre arrangement, is upbeat with new investment flowing in and increased orders for the industry," the statement added.
As a result, the industry's order books are saturated up to April 2005, even as cotton production has increased 57 percent since 1999, three million additional spindles have been added and 30,000 shuttle-less looms installed.
According to commerce ministry officials, investments to the tune of 500 billion had been made in the textile sector in the past five years, with nine firms alone investing 26 billion with plans for another 64 billion.
Officials said India also had some natural advantages in the textiles sector - strong raw material base, vast pool of skilled manpower, entrepreneurship and long experience in dealing with the European and North American markets.
Besides, the country accounts for 21 percent of the global spinning capacity and 33 percent of the weaving capacity.
At the same time, the constraints include fragmented industry, restricted processing, comparatively low quality of cotton, higher power cost, lack of labour reforms and infrastructure bottlenecks.
Source: IANS
1.4 trillion ($31 billion) over the next 10 years to double the country's share in global trade to eight percent following the phasing out of the quota regime from Jan 1.
This was indicated during a presentation to Commerce Minister Kamal Nath and Textiles Minister Shankar Sinh Vaghela on the preparedness of the industry in the new quota-free dispensation, an official statement said Wednesday.
A Vision 2010 document prepared by the government envisages that the Indian textile industry will grow to $85 billion by 2010 from the current level of $37 billion, creating some 12 million new jobs. Exports are targeted at $50 billion.
"The mood in the Indian textile industry, in anticipation of the phase-out of the quota regime of the multi-fibre arrangement, is upbeat with new investment flowing in and increased orders for the industry," the statement added.
As a result, the industry's order books are saturated up to April 2005, even as cotton production has increased 57 percent since 1999, three million additional spindles have been added and 30,000 shuttle-less looms installed.
According to commerce ministry officials, investments to the tune of 500 billion had been made in the textile sector in the past five years, with nine firms alone investing 26 billion with plans for another 64 billion.
Officials said India also had some natural advantages in the textiles sector - strong raw material base, vast pool of skilled manpower, entrepreneurship and long experience in dealing with the European and North American markets.
Besides, the country accounts for 21 percent of the global spinning capacity and 33 percent of the weaving capacity.
At the same time, the constraints include fragmented industry, restricted processing, comparatively low quality of cotton, higher power cost, lack of labour reforms and infrastructure bottlenecks.
Source: IANS