Textile ministry targets $8-billion foreign investment in five years

NEW DELHI: The textile ministry has set a target to attract more than $8 billion (Rs 40,000 crore) foreign direct investment (FDI) in textile and garment sectors over the next five years. The ministry is in the process of firming up a mission to identify potential investors in Europe, the US and China. It is also working on an incentive package to woo potential investors to set up manufacturing units in India.

���The ministry has roped in a consultant to chalk out a strategy,��� a senior ministry official, who did not wish to be named, said.

The ministry will also invite leading private equity funds and foreign banks to invest in the domestic textile sector. It will also attract foreign designer houses and garment manufacturers. The ministry is targeting about $20 billion (approximately Rs 100,000 crore) domestic investments in the sector.



���We want to promote India as a textile outsourcing hub for global retail chains. To bolster our initiative, we are also setting up supply chain in various cities and textile and apparel clusters in many states. We have initiated talks with many state government to this effect,��� the official said.

The consultant has been asked to make a perception analysis of potential investors, both in the country and abroad. It has also been asked to find out whether foreign companies are interested to enter India through the joint venture route, he added. The ministry is willing to remove all hurdles specified by potential investors to facilitate investments, he added.

The proposed mission, which would include ministry officials and industry experts, would also visit various countries and lobby with their governments. The mission will launch publicity campaigns and hold road shows abroad. It would seek to inform foreign companies about the Indian textile sector, cost benefits in India, central and state level policies, availability of raw materials and details of FDI in recent years, he said.