Textile reforms to generate 65 million jobs

Domestic textile industry, which currently facing various odds, could achieve US$ 55 billion of investments, create job opportunities for 65.4 million workforce and its CAGR could go up at 22% by 2010 provided reforms are initiated into it at quicker speed, according to findings of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

In a Study brought out by ASSOCHAM on `Indian Textile: Weaving a Global Spin’, it has been stated that with continuing bottlenecks in place, the projected investment for 2010 could fall at US$ 16 billion from projected US$ 55 billion and job prospects stay for a meagre lot of 19 million workforce as against projections for 65.4 million.

The predictions for CAGR of 22% by 2010 would slip at 6% until vigorous efforts are made for reform introduction to the textile sector, said ASSOCHAM President Mr. Venugopal N. Dhoot while releasing the findings of the Study.

The industry attracted investment of Rs.33,000 crore during fiscal 2006-07, up by 51% from Rs.21,850 crore in the previous year. The total size of the textile sector is $ 47 billion with domestic market at $ 30 billion and export market at $ 17 billion.

The study recommends changes in existing schemes such as TUFS suggesting that the amount sanctioned under it fall short of re-imbursement liability of the Government; hence, its allocation should be increased. Spinning and composite mills have been the prime beneficiaries of the sector. The benefits of the scheme should be extended to processing and garment sector as these are the highest value added products in textile manufacturing chains and earn minimum foreign exchange.