As compared to 2008, Foreign Direct Investment (FDI) in textile sector in India for 2009 has gone up by 11 percent to Rs 9.687 billion. FDI in textile sector during 2008 was recorded at Rs 8.696 billion.
Minister of State for Textiles, Panabaaka Lakshmi said that, FDI in the textile industry has mainly flown from Europe, US and China.
Government has initiated various steps such as advancement of technology, design and textile parks, as also efforts are being made for betterment of labour, to attract FDI and for maximum deployment of foreign funds. Government, under the automatic route, permits 100 percent FDI in the textile sector.
Lakshmi, while responding to a query stated that, government had broaden the horizons of textile exports and in order to trim down India’s export dependency on US and EU markets, is advocating an export regimen, to explore areas in the East and South East Asia.
The policy is not just concentrated on exploring newer markets but even focuses on drawing more FDI, she said. The sector was badly hit by the global economic slump, which had adversely affected both exports and the domestic market.