New Delhi, Nov 18 (UNI) The domestic textile industry can attract an investments of 55 billion dollars, besides generating 65.4 million employments by 2010, provided reforms take place at quicker speed, an industry body said today.
The 47 billion dollar industry with domestic market at 30 billion dollars and export market at 17 billion dollars, attracted Rs 33,000 crore investment during fiscal 2006-07, up by 51 per cent from Rs 21,850 crore a year ago.
In a study by Assocham titled ''Indian Textile: Weaving a Global Spin,'' the chamber said following the appreciating rupee against dollar which is adversely affecting textile industry, the projected investment could fall at 16 billion dollars from projected 55 billion dollars and job prospects stay for a meager lot of 19 million workforce as against projections for 65.4 million by 2010.
''Hardening of rupee has already effected the competence of textile sector as its margins have lowered and international competition has become stiffer. The textile sector would lose its glare for good provided reforms are further delayed,'' Assocham President Venugopal N Dhoot said.
The predictions for CAGR of 22 per cent by 2010 would slip at six per cent until vigorous efforts are made for reform introduction to the textile sector, he said.
Mr Dhoot demanded the government to align the duty rates so that textile manufacturers can utilise the unused funds, saying custom duty of 7.5 per cent charged on import of PTA (Purified Terephthalic Acid) should be scrapped as there is no import element involved in it and additional four per cent customs duty levied on textiles and clothing should be refunded to exporters.
The industry body said the Textile Ministry should further open up the sector by reducing customs duty on import of textile machinery and equipment to zero level in next 4-5 years.