India to woo European investors for FDI in textiles

The Textiles Ministry will set on mission to woo European investors to meet the government target to attract $6 billion of foreign direct investment (FDI) by 2015.

An industry delegation, led by Textiles Minister Dayanidhi Maran, will leave for a nine-day visit from October 26 to Switzerland, Italy and Turkey.

There, the delegates would be meet the officials of European firms like Beninger, Rieter, Bilsar and Tic.A.S to seek investments in the country.

"We expect to attract 20 per cent of the $6 billion FDI target in the first year (2009-10)," Maran told reporters.

India offers various incentives to foreign investors like low-cost labour and intellectual right protection, he added.

Though India allows 100 per cent FDI in the textiles sector, the inflows were meager at $200 million in 2008 or 0.6 per cent of total $33 billion FDI.

India would also be holding road shows in Germany and France in November.

Maran, who recently visited Japan to seek FDI, said the domestic textiles industry would require an additional investment of $24 billion (Rs 110,000 crore) by 2015 to maintain a growth rate of 8 per cent.

The second largest employer after agriculture, the textiles industry estimated at $62 billion (Rs 283,966 crore) is expected to reach $110 billion (Rs 503,380 crore) by 2015, including $45 billion of exports.