India's Textile Industry Set For Bigger Growth And More Foreign Investment

November 19, 2009 11:30 a.m. EST

New Delhi, India (AHN) - The Indian textiles and apparels industry is expected to attract much foreign investment in the future, India's textile minister Dayanidhi Maran said. He made the comment at the beginning of the 25th International Apparel Foundation (IAF) World Apparel Convention.

The textiles minister said that Indian textiles and apparel exports, which are currently valued at $22 billion, are expected to increase four fold. The minister emphasized the facts that around 60% of Indian exports are textiles, over 70% of clothing is headed to the United States and European Union markets and there is an urgent need to explore new markets,

The minister explained that there was an urgent need to attract and sustain foreign direct investment in the textiles sector in order to create more employment, upgrade technology and create brand India to attain a 4% share of global trade in textiles and clothing.

It is expected that the Indian retail Industry will be an attractive destination for foreign Investment in coming years.

Jyotiraditya Scindia, minister of state for commerce and industry said that with skilled manpower, a diverse raw materials base and growing economy, the Indian market is an attractive destination for foreign capital. He added that his ministry is taking steps to diversify Indian exports to new and emerging markets.

He also urged foreign investors to take a good look at Indian handlooms which are not only environmentally sustainable but also offer a range of fabrics and designs.

The IAF Convention is being held "to explore experiences, opinions, strategies and the possibilities of forging inter-dependent relationships throughout the entire fashion industry value chain. The textile and apparel industry also forms the backbone of India's recent economic boom," according to a statement on the IAF Website.

The Indian textiles and apparel industry is currently valued at $40 billion. It is growing at around 14 percent.