The Hindu Business Line : Maran stresses need for FDI in textile sector

The Union Minister for Textiles, Mr Dayanidhi Maran, greeted by the International Apparel Federation President, Mr Vassilis Masselos, at the federation’s 25th convention in the Capital on Thursday. The Minister of State for Commerce, Mr Jyotiraditya Scindia, looks on. —

Our Bureau

New Delhi, Nov 19

The Textiles Minister, Mr Dayanidhi Maran, has said there is an urgent need to attract and sustain foreign direct investment in the textiles sector if India is to achieve the goals of employment generation and technology upgradation, besides attaining four per cent share in the global trade in textiles and clothing.

“The Indian textiles and apparel market is currently valued at $40 billion and is growing at 14 per cent. Most of the top global apparel retailers, such as JC Penny, Nautica, Docker and Target, have their sourcing network in India,” he said, while inaugurating the 25th World Apparel Convention here on Thursday.

The Minister also called upon major international players to collaborate with the Indian textile industry in the manufacture of fabric and setting up of greenfield units in textiles machinery, man-made fibre and yarn.

Apparel exports

Mr Maran also noted that Indian textiles and apparel exports, which is worth $22 billion, is expected to register a four-fold increase to touch $90-100 billion in the next 25 years.

“At least 60 per cent of textile exports are to the US and EU markets.

“There is an urgent need to broaden the product mix and explore new markets, while maintaining and increasing the share of Indian textiles and clothing in core markets through product innovation and diversification,” he added.

Mr Maran also said there is an urgent need to increase the use of technical textiles in the country; this is now just 4 per cent, compared to international norms of 22 per cent.

New markets

The Minister of State for Commerce and Industry, Mr Jyotiraditya Scindia, in his address, said his Ministry is taking steps to diversify Indian exports to new and emerging markets.

In the Foreign Trade Policy 2009, 29 countries in Latin America, Africa and Oceania have been given special thrust under the Focus Marketing Scheme and Focus Market Scheme.

Cut transaction costs

He said if Indian exports have to be competitive there is an urgent need to cut transaction costs and his Ministry has formed a Committee to look into a range of levies and taxes affecting exports, from factory to port.

He also said the Department of Industrial Policy and Promotion (DIPP) is consolidating all the Press Notes issued to facilitate exports and foreign direct investment.

Job potential

He said Indian textiles are highly decentralised and have a great potential for a job creation and investment. Investments are also needed to upgrade technology in the industry. He urged foreign investors to have a re-look at Indian handlooms, which include a variety of fabrics and designs and are environmentally sustainable.

Also present on the occasion was Mr Vassilis Masselos, President, International Apparel Federation (IAF). The convention is being jointly organised by International Apparel Federation (IAF), the Netherlands, and the Clothing Manufacturers Association of India (CMAI), Mumbai.

More Stories on : Foreign Direct Investment | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page