New Delhi: The textile ministry is eyeing foreign direct investment of $6 billion in the sector in the next five years as against $200 million garnered in 2008.
Union textile minister Dayanidhi Maran is goingfor a road show to Switzerland, Italy Turkey and other European countries to attract investment.
The ministry expects investments to start pouring in textile machinery, fabric manufacturing, garmenting, manmade fibre and yarn, technical textiles and bringing clothing brands to the domestic market.
"We are expecting $6 billion of foreign investments in the next five years in the sector, which is going to be primarily from European countries. These foreign firms can take advantage of the economical labour and the huge domestic market," Maran told DNA Money.
The Indian textile sector attracted $200 million of FDI in 2008, which is just 0.6 % of the global FDI at $33 billion in 2008. The Chinese textiles industry attracted foreign investments of about $10 billion in the same period.
According to the ministry official, the Indian textile industry would require an investment of $24 billion by 2015 to maintain a growth rate of 8%. The domestic market can fund $18 billion of this and rest would come from the foreign firms.
The domestic textile industry was severely impacted as exports crashed due to global slowdown in the last fiscal. The ministry has been trying for a deeper penetration in the US and European markets to increase exports. A recent survey commissioned by the industry indicated that firms in Germany and Switzerland were interested in investing in textiles machinery and high-end fabric, while Turkey, Italy and France showed interest in garments and apparels.
The delegation to Europe, will interact with major textile machinery manufacturers in Italy such as Beninger, Rieter, Jacob Muller and Weisbrod-Zuerrer. They will also meet officials of Miroglio, Marzotto Gruppo Coin, Vincenzo Zucchi, Radici Group, Sinterama and Zegna.
The Indian textile sector is worth $62 billion and is expected to reach $110 billion by 2015, which includes $65 billion domestic and $45 billion export market. The sector has allowed 100% FDI.


