The textile industry of India is the second largest provider of employment after agriculture. The growth and development of textile industry has a direct bearing on the improvement of the economy of the nation. Currently, the textile industry contributes about 14% to industrial production, 4% to the GDP, and 16.63% to the country’s export earnings. It provides direct employment to over 35 million people.

The industry is accelerating at an annual growth rate of 9%-10% and is expected to grow at a rate of 16% in value terms and will reach the level of US $ 115 billion by 2012. The clothing and apparel sub-sector are expected to grow at a rate of 16% in volume terms and 21% in value terms, and textiles exports are expected to grow at a rate of 22% in value terms, by 2012.

The Technology Mission on cotton has increased cotton production and reduced contamination levels. The Technology Up-gradation Fund Scheme has facilitated the installation of the state-of-the-art machinery at competitive capital cost, and the Scheme for Integrated Textiles Park was launched to neutralize the weakness of fragmentation of various sub-sectors of the textiles and non-availability of quality infrastructure. The rationalization of fiscal duties undertaken during the last three years has provided a level playing field in all segments of the industry, resulting in the holistic growth of the industry.

Investment in the textiles sector in the past three years increased from Rs. 11,628.00 crore in 2004-05 to Rs. 31,000.00 in 2006-07. Total investment in the textiles and clothing industry is expected to reach Rs 1,50,600 crore by 2012.