TEI expected to invest Rs20,000cr during next five years

11 Apr '07

3 min read

1. What is the present condition of Indian textile engineering industry and how much ability is there to compete in the international market?
Ans: The Indian Textile Engineering Industry is not very keen to increase its export performance in view of the surge in domestic demand. It has already achieved an export of Rs.535 crore during 2003-04. However, the export became less in subsequent years due to the domestic demand. The export would obviously increase along with the growth of the TEI.

2. What are the plans to attract investment in this sector?
Ans: The Textile Engineering Industry need to invest approx. Rs.20,000 crore during the Eleventh Plan period i.e. 2007-2008 to 2011-2012 for modernization, upgradation and expansion of the existing capacity. The industry is likely to invest provided there is sustained demand for machinery during the Eleventh Plan.

The industry is exploring the possibility of foreign collaboration/foreign direct investment in this sector. However, there is a need for change in the Government policies to attract foreign investments in the sector. There is also an urgent need for short term and long term support measures from the Government including the correction of fiscal anomalies and inverted duty structure.

Textile Machinery Manufacturers' Association

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