Textiles need Rs 2 lakh cr to meet vision target

The textile industry will require an investment of Rs 1.94 lakh crore by 2012 to become an overall industry worth $110 billion, according to a study jointly conducted by the Central government and Crisil. The earlier investment estimates for the Textile Vision 2010 was Rs 1.40 lakh crore.

Meanwhile, the Central government is looking at new avenues to further boost the textile industry and achieve the target of making it a $85 billion industry by 2010.

"We are expanding into new areas, both in the export and the domestic markets. The textile secretary is going to South Africa in April and top government delegations will also visit many places in order to boost exports," said Jagadip Narayan Singh, textile commissioner, ministry of textiles.

He said Japan had always been a good textiles market, but traditionally India's presence there had been weak. "Apart from Japan, Latin American countries and even China can offer good opportunities," Singh said. The United States and Europe are two good export markets for the country, he added.

In 2005-06, the textiles and clothing exports increased 16.4 per cent to Rs 71,857 crore from Rs 61,730 crore in 2004-05.

"The way the domestic textile sector is witnessing investments, the future looks bright," Singh said. Under the Technology Upgradation Fund Scheme (TUFS), the country saw an investment of Rs 15,000 crore in 2005-06, which in 2006-07 was about to reach Rs 35,000 crore, he said.

The spinning sector has so far attracted a significant chunk of funds under the TUFS. Now it seems the government is focusing on the processing segment.

"Though changes in the processing division have started, it has not yet reached its optimum level. Spinning and other sectors got the benefits and now the government is giving special attention to the processing sector," the textile commissioner said. Crisil's latest estimates suggest processing will receive a chunk of Rs 51,000 crore (over 25 per cent of total investments).