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India sees 06/07 textile investment at $7.4 bln http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-11-08T193728Z_01_NOOTR_RTRJONC_0_India-275483-1.xml
Wed Nov 8, 2006
NEW DELHI (Reuters) - India expects investment in its textile sector of 330 billion rupees ($7.4 billion) during the current fiscal year, compared to 219 billion rupees the year before, a textile ministry statement said on Wednesday.
About 250 billion rupees of that would be channeled through the government-funded textile modernisation fund, Textile Minister Shankersinh Vaghela told reporters.
The main feature of the Technology Upgradation Fund Scheme (TUFS) is a 5 percent reimbursement of interest to financial institutions which lend under the scheme. It also offers capital-linked credit subsidies to the textile industry.
The government had earlier said it expected to double its fund disbursement under TUFS to 300 billion rupees in 2006/07 from 150 billion rupees in 2005/06.
The textile and clothing industry contributes about 14 percent to industrial production, and about 17 percent to the country's total exports. It directly employs over 35 million people and another 50 million work in allied activities.
India's textile export target for the current fiscal year is $19.7 billion -- of which $4.6 billion was recorded in the April-June quarter -- compared to $17 billion last year.
The European Union is the largest market accounting for 35 percent of textile exports, followed by the U.S. at 27 percent, the statement said.
The National Textile Policy 2000 has set a target of $50 billion of annual textile exports by 2010. By when, the statement added, the sector aimed to attract investment totalling 1.4 trillion rupees.
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