Textile ministry in favour of foreign R&D joint ventures

Textile ministry has recommended that industry players to go for joint ventures and form strategic alliance with foreign firms, based on the booming performance of the sector.

"Indian textile firms should strive for joint ventures with foreign firms to gain expertise and transfer of technologies," said J N Singh, textile commissioner. He added that there should be sufficient investment in research and development (R&D).

Though $40 billion-plus textile sector is growing over a rate of 20 per cent per annum, R&D sector seems to be attracting a minimal sum. Industry too feels that R&D investment will prove advantageous.

"There is lot of scope for investment in R&D as it is very limited at present. Many of the machinery and products are not of our own. If industry goes for investment here, innovations could be made possible and in house manufacturing of fabric will get a boost," said D K Nair, secretary general, confederation of indian textile industry.

The commissioner also recommended that firms should invest in large scale projects and understand the customer needs world wide so that industry can cater to the increasing global market.

"Indian textile entrepreneurs have taken up to the global challenge. The growth will be in tandem with retail boom in the country," said Singh.

Under the Technology Upgradation Fund Scheme, which allows a subsidy of 5 per cent to textile firms on the loan taken, industry's investment is expected to touch Rs 30,000 crore by the end of this fiscal. In 2005-06, it was around Rs 16,000 crore.

The export increased to $ 17 billion in 2005-06, which industry sources say will touch $ 20 billion in FY07.

By 2010, the ministry is estimating exports at $50 billion.