Boom time for Indian textiles, to reach $110 bn

New Delhi, Nov 14: The Indian textile market will grow to a whopping billion by 2008 and 0 billion by 2012, driven by high production and increased exports.

''The overall market in 2005 was 18 billion dollars and is likely to increase by 16-20 per cent this fiscal too,'' Chairman Cotton Textiles Export Promotion Council (TEXPROCIL) Prem Malik told reporters here today.

This stupendous growth in the textile sector will witness a boom of 60 billion dollars by 2012.

''We are currently producing 27 million bales of cotton per annum and 58 million spindles will be required to reach the set target,'' Mr Malik said. The surge in the sector would enable creation of 12 million direct jobs in the sector.

An investment of Rs 57,000 crore is expected to be in spinning only.

India has recorded a growth of 16.6 per cent in exports of textiles and clothing to the US during January-June 2006, thus increasing its market share.

Similarly, the industry has improved its performance in the current year recording a growth rate of 23.81 per cent in the exports to the European Union in comparison to China which has shown a decline due to the imposition of quotas under the safeguard mechanism.

The positive sentiment with regard to the sector is that investors seeking to explore possibilities are not only expanding existing capacities, but also setting up greenfield projects.

Recently, Spentex Industries Ltd, the textiles arm of CLC group acquired Tashkent-To'yetpa Tekstil in Uzbekistan for 81 million dollars.

Already through with the production, it also plans to create a plant over there to meet the growing demand.

Mr Ruzikulov Rahamatullah Ruzikulovich, Minister of Textiles, Uzbekistan, currently on a visit to India, said that they are looking for more Indian participation in the textile sector.

''There is a need of a special kind of bilateral arrangement whereby the two countries can complement and supplement each other,'' Mr Malik said.

UNI