'Indian textile industry may reach USD 115bn by year end'

Indian textile industry is estimated to reach USD 115 billion by the year end with an annual growth projection of 16%, Assocham said today.

The growth will trigger corresponding demand in ancillary industry, including machinery and accessories, apart from demand from the emerging rural market, a Associated Chamber of Commerce and Industry of India (Assocham) report said today.

Moreover, increased exports to the tune of USD 50 billion clearly indicate a tremendous need for increased production, the report titled 'Textile Industry in India' said.

An estimated growth of 11 to 13% in non-woven sector highlights the need for new technology, machinery and accessories in India, it said.

Textile machinery sector at present meets 45-50% of the overall demand of the domestic textile industry whose main constituent is ginning, spinning, weaving and processing, the report stated.

Tamil Nadu specialises in production of spinning and allied machinery followed by textile testing equipment, while Gujarat is the leader in synthetic filament yarn machinery production which is translated as the textile machinery worth Rs 5,010 crore is coming from the six clusters namely Ahmedabad, Bangalore, Coimbatore, Ludhiana, Mumbai and Surat, it said.

The Textile Engineering Industry (TEI) Census conducted by Government of India unfolds over 1,446 units of which 598 units produce complete machines and about 848 units are producing parts and accessories as well as equipment for testing and monitoring of fibres and textiles.

The 11th Five Year Plan (2007-2012) had projected India securing a 7% share in the global textiles trade by 2012.