A recent report by Associated Chamber of Commerce and Industry of India (ASSOCHAM)predicts the Indian textile industry is estimated to reach $115 billion (Rs 5.75lakh crores) by the year end with an annual growth projection at 16 per cent.As per the reports, the growth will trigger corresponding demand in ancillaryindustry, including machinery and accessories, apart from demand from theemerging rural market.
Moreover,increased exports to the tune of $50 billion (Rs 2.50 lakh crores) clearlyindicate a tremendous need for increased production, the report titled 'TextileIndustry in India' said. An estimated growth of 11 to 13 per cent in non-wovensector highlights the need for new technology, machinery and accessories inIndia, it added. Highlighting the textile machinery sector, it states that atpresent it meets 45-50 per cent of the overall demand of the domestic textileindustry whose main constituent is ginning, spinning, weaving and processing.
Thereport also indicates that 11th Five Year Plan (2007-2012) had projected Indiasecuring a 7 per cent share in the global textiles trade by 2012 and at currentprices, the Indian textile industry is valued at $55 billion (Rs 2.75 lakhcrores), 64 per cent of which caters to domestic demand. For the current fiscalyear, it sets the target of export of textiles and garments to around 28-30billion (Rs 1.40-1.50 lakh crores).