FDI in textile sector
This is the opportune time for more foreign direct investments (FDI) in the textile sector, especially in textile machinery manufacturing, according to the Textile Commissioner, Union Ministry of Textiles, J.N. Singh.He told presspersons here recently that the textile units, even the smaller ones, were going in for modernisation and expansion of capacities. The trend now was for branded, new machines and the units were willing to invest on this. Hence, the demand for textile machinery in the country was expected to be huge for another five years.Currently, some textile product manufacturers had confirmed their plans for investment in the country.On textile machinery manufacturing, he said that the country needed more units that would manufacture especially weaving, processing and garmenting machines.In a move to encourage FDI, the Union Textile Minister and a team of officials visited three or four countries and “it is a matter of time for major FDIs to happen in this front.” Some foreign companies had shown interest.
The Ministry was also taking up discussions with some of the potential investors. “We create awareness and we also create a market,” he said.Interested companies were trying to assess the demand, study if the growth in the textile sector was structured or cyclical and would then take a decision.They were earlier marketing from outside; now they had senior marketing people here.“The time is ripe now for more FDI,” he said.
