Foreign investors are not interested in textile as the sector has witnessed decline in FDI from 1.43 to 0.40 percent during the first three quarters of current FY.
Last year, total 17 investment proposals with the investment of $22.23 million were dealt with, while during April-December 2005-06 only 5 have been received to the tune of $5.72 only, official of Textile Ministry informed.
In terms of textile exports during April-November, the country registered just five percent increase to Rs41,013.57 crore against Rs 39,153.11 crore in the same period last year.
Decline in exports of man-made textiles, and wool and woollens are responsible for this low growth.
Exports of man-made textiles dropped by 15.62 percent to Rs5,026.18 crore against Rs5,956.26 crore, while exports of wool and woollens declined by 5 percent to Rs1,277.05 crore, compared with Rs1,343.12 crore during April-November 2004-05.
But products like ready-made garments and cotton textiles registered a healthy growth rate.
Exports of ready-made garments increased by 15.13 percent, while exports of cotton textiles and handicrafts increased by 0.65 percent and 8.08 percent, respectively.
During April-November, textile imports increased by around 11 percent to Rs7,050.85 crore, against Rs6,368.22 crore during the same period last year.
The ministry informed the target was to increase textile exports of $40 billion by 2010 from $13 billion at present and create 12 million new jobs.
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