Textiles

The Textile industry plays a crucial role in the Indian economy. The presence of the textile sector can be felt through its share of contribution to the industrial output, employment generation and the export earnings of the country. Currently, it contributes about 14 % to the industrial production, 4 % to the GDP and 16 % to the country’s export earnings. The textile sector is the second largest provider of employment after the agriculture and employs about 35 million people.

The advantages that India offers in this industry:

• Labor cost advantage.
• Abundant raw materials.
• Vast pool of skilled manpower.
• Large spinning and weaving capacity.
• Entrepreneurship.
• Flexibility in production process.
• Long operating experience with major markets such as United States and European Union.

Foreign Direct Investments:

As per the present policy of Government of India, 100 % of FDI is freely allowed in spinning, weaving, processing, garments and knitting sectors under the automatic route for both new ventures and existing companies except in cases where industrial license is required on account of location. For such cases, government approval is required.

Source: Ministry of External Affairs: INDIA , Dynamic Business Partner: Investor Friendly Destination