“According to Finance Minister Mr. Pranab Mukherjee the Government has included a significant increase in funds allocated to Cotton Technology Mission and to the integrated textile parks, and extension of the interest subvention of 2 per cent until March 31, 2011 for exports covering handicrafts, carpets and handlooms segments of this industry. Mukherjee said that the textile industry is also being supported with an extensive skill development programme to train 3 million persons over a 5 year period, by leveraging the strength of existing institutions under the textile ministry.”
The textile industry accounts for 14 per cent of India's total industrial production, 15 per cent of total exports, and 4% to the nation’s GDP. The sector currently provides direct employment to about 35 million people and indirect employment of around 56 million in allied activities. It is estimated to create 12 million jobs additionally right from textiles equipments to garment manufacturing by 2015.
In view of the importance of the sector, government has allowed 100% Foreign Direct Investment to promote the sector. Though the sector enjoys availability of cheap and skilled labour and technical know-how, for achieving cost-advantage in the world market, it requires economical raw materials, innovation in product and brand development, strong logistic and policy support, research and development and consistency in efficiency and productivity. Indian machinery sector should also be equipped to supply world-class machineries at world market price in India to achieve sustainable growth and value addition in the textile sector.
