Indian textile industry contributes about 14 percent to industrial production, 4 percent to the country's gross domestic product (GDP) and 16.63 percent to export earnings. Exports form over 40 per cent of the country's total production of the textiles sector, the biggest employment generator after agriculture sector and is expected to generate 12 million new jobs by 2010. The sector targets US$ 6 billion foreign direct investment (FDI) by 2015 to be invested in green field units in textiles machinery, fabric and garment manufacturing, as well as technical textiles.

India has made inroads into the markets of its key competitors which include Asian countries such as Sri Lanka, Bangladesh, Vietnam and Cambodia. The Indian textile and apparel industry is taking a new course by entering the Chinese market. Most of the top global apparel retailers, such as JC Penny, Nautica, Docker and Target, have their sourcing network in India. Indian textiles and apparel exports, which is worth US$ 22 billion, is expected to register a four-fold increase to touch US$ 90 to 100 billion in the next 25 years.

Technical Textile Segment

Technical textiles segment, is expected to employ over 300,000 additional workers increasing the total employment in the sector to 1.2 million by the year 2012. The Government has set up four Centres of Excellence (CoEs) for Meditech, Agrotech, Geotech and Protech group of technical textile, providing one-stop facilities for testing, human resource development and research and development.

Government Initiative

The Government has announced the release of a subsidy of US$ 533.87 million for the textile industry under the Technology Upgradation Fund scheme (TUFs). The government extends 10 per cent capital subsidy and 5 per cent interest subsidy on installation of machineries and for processing machinery under the TUFS. A 41-member Working Group has also been announced to be set up with a National Fibre Policy, to ensure self-sufficiency in fibre consumption and export requirements in India.

The Textiles Committee has also been reconstituted in order to ensure standard quality of textiles both for internal marketing as well as exports. The committee will also establish laboratories and test houses for testing of textiles.

In addition, an online marketing and sales portal has also been launched by the textile minister. The e-marketing platform, developed by the Central Cottage Industries Corporation of India and the Handicraft and Handlooms Export Corporation of India, will host more than 1,000 wide ranging handicrafts and handlooms products. It will also provide online services, such as e-payment facility through major debit/credit card as swell as online tracking of the shipment.

The Kerala Industrial Infrastructure Development Corporation (Kinfra) has started allotment of land for setting up units at the Textile Centre at Nadukani in the Kannur district. The Textile Centre is conceived as a comprehensive textiles industries park under Kinfra International Apparel Park. It is being developed with financial assistance under the Textile Centre Infrastructure Development Scheme (TCIDS) of the Union Government.

The Taiwan Textile Federation in association with the Bureau of Foreign Trade, Taiwan, recently exhibited a range of trendy and high performance textile products at Tirupur. Silk Fab 2009, a national level exhibition and sale of handloom silk products, inaugurated by the textile minister showcased handloom silk products and garments from over 15 states.

Advantage India

India offers cheaper production and marketing costs and enormous opportunities that have tempted Taiwanese companies to work on joint ventures with Indian companies, especially for the manufacture of manmade fabrics. Several European textile and textile machinery manufacturing companies have shown interest in sourcing garments from India. Textile companies were keen to set up base in India due to the cheap labour available here. India offers various incentives like low-cost labour and intellectual right protection to foreign investors. The country allows 100 per cent FDI in the textiles sector.