At a seminar organised by CRISIL Infrastructure Advisory, Mr Sanju Shishodia, Head CRISIL Research, said the textile sector has the potential to reach $85 billion by 2010 from its current size of $36 billion. Its average annual growth rate is 11 per cent.
This growth can be further fuelled by both exports and a rise in domestic consumption, he said.
Emphasising why the textile sector requires foreign direct investment (FDI), Mr Shishodia said, "Indian textile companies are small and fragmented. The financial strength of individual companies is too weak. FDI will help by building large scale capacities and will help capture a bigger share of the market."
India has the capability of becoming one of the leading exporters of textiles as it is the third largest cotton producer in the world after China and the US, said Ms Asha Swarup, Additional Secretary and Financial Adviser, Ministry of Textiles.
Mr Vivek Jacob, CEO, Carrera Holdings Inc (Italy), said that it was time for Indian textile companies to get more aggressive. He said it was important for them to go that extra mile to please the consumer. "They have to understand what the market needs and to understand that, it is important to study consumer trends," he said. Pointing out the need for improved infrastructure, he said, "It is very important to increase the size of industrial infrastructure. You have to create the infrastructure to service the needs of EU textile markets. If FDI comes in and there isnt a premise for them to succeed, the whole purpose is defeated. We need to give them the infrastructure."
Mr Shishodia also pointed out that the opening up of the global markets following the expiry of the multi-fibre agreement on January 1, 2005 provides a huge opportunity for India to chart out a high growth story in the textiles sector.
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| Posted : 7/3/2006 |
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