Adequate raw material, FDI vital for textile sector: FICCI

New Delhi: Observing a slowdown in the textile sector, industry chamber FICCI has emphasised the need for ensuring adequate availability of fibre and attracting foreign direct investment (FDI) to achieve higher growth in the sector.

Skill development and tapping emerging areas are other measures through which the size of the textile industry could reach $115 billion mark by 2012 from $52 billion now. Cotton textile sector grew by only 6.9 per cent in May this year compared with 14 per cent in May last year, according to the chamber.

Raising cotton yield

Adequate availability of raw material like fibre at competitive prices is crucial for the competitiveness of domestic textile sector as raw material constitutes around half of the total value of the product in textiles. In order to ensure raw material at competitive prices, the chamber pointed out that yield of cotton in the country needs to be increased at a faster pace.

At the same time, it is estimated that close to Rs 1,90,000 crore will be required in the textile sector in the next five years and FDI will have to play an important role in this, according to the chamber.

Need for manpower

Around 6.5 million people are required in this sector in the Eleventh Plan and if the industry grows at the targeted rate of 16 per cent, then urgent steps are required to ensure availability of adequate manpower for the industry.

The Government also needs to incentivise growth of emerging areas in the textile sector like technical textile. There is an estimated $127 billion market for seat belts, seat covers, baby diapers, fishing nets, conveyor belts and surgical dressings by 2010, according to FICCI.