Textiles industry fails to attract FDIs

Mumbai, May 27 (UNI) The textiles industry has failed to attract much foreign direct investment (FDI), statistics pertaining to the period from 1991 to 2002 indicate.

The FDI in the textiles sector has been only around one per cent of the total bunker during the period, according to the statistics made available by the Cotton Association.

While total FDIs during the period, considering all the industries taken together, was Rs 105,009 crore, the textiles sector could manage to attract just Rs 1,077 crore in FDIs.

Till March 2006, this figure had crawled up to Rs 1,774 crore while total FDIs had touched Rs 161,411 crore.

Meanwhile, the domestic textiles sector has attracted total investments of Rs 65,481 crore since April 1999. However, nearly 42 per cent of the investment was outside the Technology Upgaradation Fund Scheme (TUFS). The actual amount invested, taking advantage of TUFS, was Rs 37,882 crore.

The share of institutional finance to the textiles sector was 5.8 per cent of the total industries' share during 1999-2000 and 2003-2004. It went down to 1.42 per cent during 2005-2006.

UNI