Textile exports may touch $25 b: Assocham

New Delhi: Textile exports from the country will touch $25 billion in 2007-08, up from $20 billion expected in the fiscal just ended (2006-07), according to Assocham.

The country's textile exports were estimated at $17 billion in 2005-06.

Growth in textile exports by China declined by almost 20 per cent last year due to a higher valued Chinese currency, a cut in export tax rebates and higher labour costs, according to the chamber.

The 10 per cent cap on Chinese textile exports will continue till 2008.

This has provided ample opportunity for India to establish itself in the export market and compete with China when the cap on its textile exports would be lifted, the chamber added.

Assocham also estimates that the textile sector would attract an investment of Rs 1 lakh crore under the Technology Upgradation Fund Scheme (TUFS), which aims at transforming the textile industry by extending fiscal assistance.

Textile exports and investments will multiply manifold as financial assistance to the textile industry leads to technological infusion in most units that are revamping themselves to take on the global challenges.

According to the chamber, there is a need to evolve a strategy aimed at improvement in the levels of productivity and efficiency, quality control and faster product innovation.