India's textiles sector attracted Rs 968 cr FDI in 2009

Foreign Direct Investment (FDI) in India's textiles sector increased 11 per cent to Rs 968.7 crore in 2009, compared to the previous year.

In 2008, the textiles industry had attracted FDI worth Rs 869.6 crore.

"Foreign direct investment in the textiles sector has been received mostly from Europe, the US and China," Minister of State for Textiles Panabaaka Lakshmi said in a written reply to the Lok Sabha.

She said the government has been taking several steps like development of technology, design and textile parks, besides improving labour conditions, for attracting FDI and optimum utilisation of foreign funds.

The government allows 100 per cent FDI in the textiles sector under the automatic route.

Replying to another query, Lakshmi said that to diversify textiles exports and reduce dependence on the US and European markets, the government is promoting an export regime to cover other areas in the East and South East Asia.

The policy envisages not only search for new markets but also attracting FDI, she added.

The sector, which was hit-hard by the global economic crisis, has witnessed a slowdown in exports as well as the domestic market.