Indicating a positive shift in investor sentiment towards Indian textile industry, foreign direct investment (FDI) in industry has increased by 91.41 percent to $198.86 million during April-March 2013-14 as compared to $103.89 million during previous fiscal. During the period April-May 2014, the country's textile sector attracted FDI worth $11.70 million.
With an aim to enhance foreign investments in textile sector, the government has taken various policy measures such as technology upgradation fund scheme (TUFS), scheme for integrated textile parks (SITP), integrated skill development scheme (ISDS). Other government supported schemes for the industry include schemes for development of technical textiles and schemes for the development of the powerloom sector.
Textile industry contributes around 4 percent to the gross domestic product (GDP), around 10 percent to the country’s export earnings and nearly 14 percent to industrial production besides providing direct employment to over 45 million people. The present market size of the industry stands at around $90 billion, which is expected to touch $220 billion mark by 2020. Exports have remained a core feature of India’s textile industry and textiles Ministry has set textile export target at $45 billion for the current financial year. The government is also preparing new textile policy which aims to achieve $300 billion exports by 2024-25 and creation of additional 35 million jobs by attracting investments.
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