Performance Of The Textile Sector In The Last Two Years
There has been a resurgence in the Indian Textile Industry in the post quota period. India is emerging as one of the major outsourcing hubs as it has comparative advantage over its competitors on availability of relatively inexpensive and skilled workforce, design expertise, a large production base of basic raw materials, yarn and fabric and availability of a wide range of textiles.
With the abolition of the quota regime coupled with the visionary schemes and policy measures taken by the UPA Government, the textile sector has been transformed into a sunrise sector alongwith IT and BT. The industry is instilled with a new sense of optimism and achievements. Higher investments, higher production and higher exports are illustrative of the resurgent mood of the Indian textile industry.
(a) Expansion of the industry size:
There has been an expansion in the Indian Textile Industry in the post quota period; the industry size has expanded from US$ 37 billion in 2004-05 to US$ 47 billion in 2005-06. In this period, the domestic market increased from US$ 23 billion to US$ 30 billion, whereas the exports increased from around US$ 14 billion to US$ 17 billion.
(b) Investment scenario:
The policy initiatives taken by the Government in the last two Union Budgets have created an enabling environment propelling growth and investment in the Textile Sector.
Entrepreneurs have started looking at this industry as a promising one. Substantial increase in capacity expansion has been noticed during the last two years. There has been an all time high increase in investment proposals as is evident from the table in file:
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Conclusion:
The Indian textile industry is in an much stronger position now than it was in the past. The industry which has been experiencing a rate of growth of 3 – 4 percent during the last six decades has suddenly jumped to 9 – 10 percent. There is a sense of optimism in the industry and textile sector has now dawned a 'sunrise' sector feeling.
Press Information Bureau Government of India
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