Textiles sector posts 18.2% growth

India's textile sector witnessed a growth of 18.2 per cent in 2004-05 against a degrowth of 3.2 per cent in the previous fiscal year, according to the ministry of textiles.

The figures, published by the ministry in 'The Textile Turnaround 2004-05' document that was released by Union minister of textiles Shankarsinh Vaghela here today, said all segments have registered good growth.

While the spun yarn segment grew at 5.5 per cent, the hosiery segment grew by 14.7 per cent and cloth production went up by 7.1 per cent.

Vaghela said that the turnaround has been accomplished with a mix of concerted effort and effective policies aimed at increasing productivity as promised in the National Common Minimum Programme.

"It is important for the overall economy that textile sector does well not only because it contributes 20 per cent of total export earnings and 4 per cent to GDP but also because almost one out of every six households in the country is dependent on it," he said.

On future plans, Vaghela said that this year the thrust will be on consolidating the gains made in 2004-05, generating employment and increasing investment and exports.

"We have begun positively but a lot of ground needs to be covered. Our focus this year will be on employment generation and exports. Twelve apparel park projects have been sanctioned at an estimated cost of Rs 433 crore and five of them will be completed by the end of the current year. The parks will create an additional employment for 250,000 people," he said.

He added that with estimates of investment worth Rs 140,000 crore flowing into the sector, a number of greenfield projects will be launched in the years to come.

The minister said government was working on a cluster scheme, which would be unveiled shortly and bring out a marking scheme for handloom fabrics on the lines of Silkmark to promote this sector.

Centre sets $50 bn goal for textiles exports Meanwhile, the government has set a target of 20 per cent growth in textiles exports to $50 billion by 2010. The target stands in sharp contrast to the export numbers notched up since the quota system ended on December 31, 2004.

Vaghela said, "Changes in duty drawback rates and the resultant confusion had an effect on exports in the first couple of months but now things are looking up."

Textile exports in 2004-05 declined by 3.72 per cent to Rs 53,996 crore from Rs 56,082 crore in 2003-04, according to commerce ministry figures. But the industry has posted modest growth in March and April.

Vaghela said his ministry has already held assessment meetings with exporters and promotion councils to ensure that the export performance remains upbeat.

He referred to import data from the US embassy and the European Union and said imports to the US increased by 23 per cent in quantity terms in April, while imports to the European Union were up 7 per cent between January and March.