| A separate Foreign Direct Investment (FDI) cell will be created in the textile industry to mobilise FDIs inflow of Rs 50 crore per day on an average for the next five years.
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| Shankersinh Vaghela, union minister for textile said the Indian textile sector will need an investment of Rs 75,000 crore for the next five years.
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| The objective of the FDI cell will be to mobilise huge foreign capital through liberalising government's textile policy so that the required sum is mobilised to make textile sector as healthier as possible.
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| Vaghela said that India should not be afraid of China as far as the international textile market is concerned as the companies have decided to make FDIs in the Indian textile market.
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| "Brand India stands second in the international textile market," said Vaghela in the 'India Brands: Global Wear Summit on Strategies for Global Leadership in Textiles and Apparel Business', organised by Gujarat Chamber of Commerce and Industry (GCCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in Ahmedabad on Friday.
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| China being a communist country, its government can mobilse resources to help an industry when need arises. The scenario is altogether different in India, here before commencing any project, a person has to deal with stay orders from the high court or Supreme court, explained Vaghela.
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| He further said that the state and the central government have its own limitations. "However, the government will try to make policies that will help the Indian textile industry to grow," assured Vaghela.
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| According to Vaghela, around five textile parks have already being put up in India. "And 25 more textile parks are on the cards," he announced. India needs to add more efforts not only to compete with China but with other SAARC countries like Pakistan, Sri Lanka and Bangladesh, as well, he said.
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| Nayan Parikh, chairman of textile committee, government of India, said all the Indian textile players will have to double their capacity.
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| "Presently, India contributes three per cent that is around 13 billion USD of total 400 USD in the international textile market. The contribution of around eight per cent with 50 billion USD out of total 625 billion USD by the year 2010 has been projected," explained Parikh adding that India also seeks more FDIs.
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| Talking about the government's vision 2010 for textile industry, Rajendra Shah, president of GCCI said by creating 12 million new job opportunities, textile economy will grow from the current 37 billion USD to 85 billion USD and increase India's share in the world trade from the current four per cent to eight per cent.
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| "We need to capitalise on our inherent strengths such as low cost labour force, sizable supply of domestic fabrics, strong and diversified raw material base for manufacturing natural and artificial fibres and a capacity based advantage in spinning," said Shah.
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| When asked about government's new policies for textile industry, Vaghela choose not to comment. |
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