Positive Opportunities Inviting FDI, Indian Textile Industry, Fabric Manufacturing, Textile Sector Growth, Metro Group, Nike, Fibre2fashion

Indian textile industry is the second largest in the country with regards to employment generation, next to agriculture. It contributes significantly to national output, employment, and exports of the country. Apart from China, the country's textile sector is matchless in size, and competitiveness. Textile sector in India is expected to reach $110 billion by 2015. This includes a $45 billion of exports. Growth rate of the textile sector is estimated to be around 8% per annum. To sustain its growth ratio, Indian textile industry requires an investment of $24 billion by 2015. This comprises of the domestic investment of $18 billion, and FDI of $6 billion.

The reasons of this vibrant growth are manifold. The country has a complete supply chain starting from raw material supply to superior quality of finished products. Availability of skilled and cheap labor is abundant. The industry encompasses experienced entrepreneurship, and design skills, which are tough for the competing countries to match.

Textile ministry aims to improve foreign investment. Germany, France, and Switzerland are identified as prospective countries ideal for investing in India. The Government is now exploring investment opportunities in potential countries like Japan. A trade delegation is proposed to explore the potential opportunities in Italy, Turkey, and Switzerland. Textile Minister Mr. Dayanidhi Maran has expressed positive hopes of attracting 20% of the expected $6 billion FDI during 2009-10.

India has been and is liberal and transparent with regards to its FDI policies. Investment in textile units by foreign countries does not require any prior approval either by the Government or by the Reserve Bank of India. The FDI cell set up by the Ministry of Textiles assists the investing countries by providing assistance and advisory support with other organizations. It monitors data relating to domestic textile production, and foreign investments. It aids the foreign companies in solving their operational problems, and assists them in locating joint venture partners.

With the advent of recession, there was a drastic fall in the export figures during the last fiscal. With possible opportunities for FDI, textile ministry is trying to explore new and profitable investment opportunities. Investments are expected in fabric manufacturing, textile machineries, technical textiles, and man made yarn and fibers. Renowned international brands are eyeing opportunities in India comparatively over its counterparts. Brands such as Carrefour, Decathlon, H&M, JC Penney, Gap, Levi Strauss, Metro Group, Nike, Target, Tommy Hilfiger, Tesco, Marks are Spencer, and Wal-Mart are a few to name. These key international players are predicted by industry analysts to look towards India for their sourcing requirements.

Textiles and handicrafts made in India are exported to more than 100 countries worldwide. Ready made garment sector is the largest in the country, comprising 41% of the total textile exports of the country. Domestic, organized retailing in India showed a growth rate of 13-14% for the year ended March 2009. Apparel is the second largest retail sector in India. Domestic apparel retailing is estimated to be around $2.7 billion USD. With positive foreign investments, the textile and apparel sector can see a skyrocketing growth.

Presently Government polices have changes a lot regarding investment opportunities. With the country opening its doors to the outside world, foreign direct investment opportunities can be transformed into profitable opportunities.

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