Textiles need $36 billion to achieve turnover of $85 billion by 2010

14 Feb '07

1 min read

Textile Ministry's target of achieving a turnover of $85 billion by 2010 seems to be a far dream, with Technological Upgradation Fund Scheme (TUFS) scheduled to be withdrawn next month and FDI of only 1.31 percent received of the total $44 billion attracted by the country.

The sector needs an investment of $36 billion for technological upgradation and capacity expansion, especially in Man Made Fibre (MMF) sector and technical textile, according to Ministry's estimates.

Industry sources said that MMF textile sector has potential to grow 19 percent annually to $6.1 billion by 2010.

But MMF textile sector has faced various hurdles and government apathy affecting capital investment in mass scale weaving, processing and large scale garmenting units for production of MMF textile and clothing compromising the segment's growth in the process.

To push ahead for MMF and technical textile sectors growth, additional capacities in spinning, weaving and processing, investment in product development, focused investment in technical textiles, backward integration in knitting sector, development of fashion and design studios for garments, concentration on logistics and supply chain management, and development of skilled manpower will have to be undertaken on a war footing.

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