FDI Inflows to Textiles

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FDI Inflows to Textiles industry in India enhanced the growth of the sector. India has been known for its textiles all over the world. The textile industry is concentrated in the western belt of the country, mainly in the state of Gujarat and Maharashtra. Ahmedabad, in Gujarat is called the 'Manchester of India', after a place which was famous for its textile mills.

Indian textiles industry-At a glance

The Indian textiles industry is a highly established sector. The advantages of the Indian Textile industry are fully equipped manufacturing units, vast multi-fiber raw material base, advanced designing capabilities, highly skilled and effective human resources.

In the future, India has good scope of becoming the global textile and apparel sourcing center. The Indian textiles sourcing market is expected to grow at the rate of 12% per year. The market value is US$ 22-25 billion which is expected to grow to US$ 35-37 billion by the year 2011.

FDI Inflows to Textiles-Facts

  • The textiles industry in India is experiencing an increase in the collaboration between national and international companies

  • International apparel companies like Hugo Boss, Liz Claiborne, Diesel, Ahlstorm, Kanz, Baird McNutt, etc have already started their operations in India and these companies are trying to increase it to a considerable level

  • National and the international companies that are involved in collaborations include Rajasthan Spinning & Weaving Mills, Armani, Raymond, Levi Strauss, De Witte Lietaer, Barbara, Jockey, Vardhman Group, Gokaldas, Vincenzo Zucchi, Arvind brands, Benetton, Esprit, Marzotto, Welspun, etc

FDI Inflows to Textiles-Government Initiatives

  • Foreign Direct Investments (FDI) up to 100% is allowed in this sector through the automatic route by the Reserve Bank of India

  • In order to provide quality cotton raw materials at reasonable price to the manufacturers, the Technology Mission on Cotton was launched

  • In order to facilitate the technological advancement in the textile industry, the Technology Upgradation Fund Scheme (TUFS) was set up.

  • The Scheme for Integrated Textile Park (SITP) is set up to provide world standard infrastructure facilities

  • The reservations for the small scaled units in textiles were abolished

Last Updated on 4/23/2011