Lack of investment leads to fall in textile sector

New Delhi: Hardening of the rupee and lack of investment in capacity expansion could lead to a slip of compound annual growth rate (CAGR) in the textile industry to 6 per cent by 2010, against the project 22 per cent envisaged by a vision document for the industry, says a study by industry body ASSOCHAM.

The roadmap was jointly prepared by the ministry of textiles and various industry associations.

The ASSOCHAM in its study, 'Indian Textile: Weaving a Global Spin', has warned that job prospects in the textile sector could stagnate at 19 million workforce as against the project 65.4 million by 2010.

ASSOCHAM has urged the ministry of textile to ensure timely completion of the textile park projects made under the Scheme for Integrated Textile Parks and also to further open up the sector by reducing Customs duty on import of textile machinery and equipment to zero level in next 4-5 years.

The chamber said the global manufacturers and private equity funds should be encouraged to invest in partnership with the small scale manufacturers to boost investment in the sector.