Observing a slowdown in textile sector, in a Press Statement issued FICCI emphasized the need for ensuring adequate availability of fiber, attracting FDI, skill development and tapping emerging areas (like technical textiles) to achieve 16% growth in the domestic textile sector.
FICCI said that there is an urgent need to focus on these four issues to achieve a size of $115 billion for domestic textile industry by 2012 from the current size of $52 bn. FICCI expressed concern over the slowdown in the growth of textile industry witnessed in the last 2 to 3 months.
FICCI noted that Cotton Textile sector grew by only 6.9% in May 2007 compared to 14% in May 2006. Similarly, FICCI observed that textile products (that include apparels) grew by just 7.13% and 9.9% in April and May 2007 compared to 12.57% and 18% in April and May 2006. For the year 2006-07, textile products grew by 11.2% compared to 16.4% and 19.2% in 2005-06 and 2004-05 respectively.
FICCI said that adequate availability of raw material like fiber at competitive prices is crucial for the competitiveness of domestic textile sector as raw material constitutes a significant portion of total value of the product in textiles (around 50%).
Click here to view more:
In order to ensure raw material at competitive prices, FICCI pointed-out that yield of cotton in the country needs to be increased at a faster pace.
Although, India's yield of cotton (kg/hectare) has increased over the last few years but it continues to lag behind the yield in competing countries like China and Pakistan. While yield of cotton in India is estimated to be 470 kg/hectare, in China and Pakistan yield is 1140 kg/hectare and 674 kg/hectare respectively.
And, it is estimated that by 2010 yield of cotton will be 1188 kg/hectare, 770 kg/hectare and 548 kg/hectare for China, Pakistan and India respectively, said FICCI.
Similarly, there is a need to increase the production of speciality and high tenacity man-made fiber for domestic apparel industry.
Click here to view more:
Federation of Indian Chambers of Commerce and Industry
marketing@alchempro.com
