12 TIPs to be set up for growth of textile sector:Vaghela

New Delhi, Nov 28 (UNI) The Government has approved the setting up of twelve Integrated Textile Parks (ITP) for the all-round growth, development and export of textile goods from the country, the Lok Sabha was informed today.

Textiles Minister Shanker Sinh Vaghela told the Lower House during question hour that the proposal for another 25 ITPs was also underway. Gradually, this number will be raised to 40 to cover the entire country, he added.

He said India's textile exports have increased from 14.03 billion US dollars in 2004-05 to 17.08 billion in 2005-06, recording a growth rate of 21 per cent. As per the latest available data, India's textile exports have amounted to 6.1 billion US dollars during the period April-July 2006, recording a growth of 16.08 per cent in comparison to the corresponding period of the previous year.

According to Industry vision, a study undertaken by CRISIL in 2004, on behalf of the Indian Cotton Mills Federation, the Indian textile industry has the potential to double the country's share of the global textile and clothing market by 2010.

He said the Government has constituted a Group of Ministers (GOM) to look into the factors for the growth of textile exports. The GOM is considering various proposals for strengthening the competitiveness, transaction, labour, power and machinery and other input costs. The GOM has not finalised its recommendations in the matter.

Mr Vaghela, however, said the Government has been taking continuous measures to enhance the competitiveness of the Indian textile industry. Some of the important ones includes 100 per cent Foreign Direct Investment (FDI) in the textile sector under the automatic route.

He said the Government has de-reserved the readymade garments, hosiery and knitwear from the SSI sector. The Technology Upgradation Fund Scheme (TUFS) has been made operational from April 1, 1999 to facilitate the modernisation and upgradation of the sector.

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