Textile sector attracts $230mn FDI in 2015-16

30 Jul '16

2 min read

The textile sector in India attracted foreign direct investment (FDI) of $230.13 million in fiscal 2015-16 ending March 31, registering a growth of 16.56 per cent over the previous fiscal, according to the department of industrial policy & promotion.

In 2014-15, the textile sector attracted $197.42 million in FDI, while it received $198.86 million in 2013-14, minister of state for textiles Ajay Tamta said in a written reply to a question in Rajya Sabha.

Last month, the Union government further opened up the FDI regime to provide a huge impetus to employment and job creation in the country. Post-announcement, most of the sectors are now under automatic approval route, except a small negative list, which makes India the most open economy in the world for FDI.

The government also relaxed local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having 'state-of-art' and 'cutting edge' technology.

“Amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment,” the last month's official statement said.

As per NAS 2015, the textile sector is amongst the largest provider of employment, and it contributed 12 per cent to manufacturing, 2 per cent of GDP and 13 per cent of the country's export earnings in 2013-14. (RKS)

Fibre2Fashion News Desk – India

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