Textiles Minister Dayanidhi Maran today said the industry was the first to come out of downturn showing a monthly growth of 5-7 per cent.
"The Indian textile industry has started showing signs of revival and it has become the first sector in the country to rebound," Maran told reporters on the sidelines of a CII function.
The industry has shown a 5-7 per cent growth on a month-on-month basis in the current fiscal as compared to a negative growth of 15 per cent in the beginning of FY10, added Maran.
The recession is over as garment manufacturers' order books are full up to June, he said.
However, the minister asked the industry to focus on the domestic market even though more than 50 per cent of produce is exported.
Calling for aggressive investments to meet the challenges posed by competing countries like China Maran said the legacy issues have to be overcome.
The Minister clarified that the government does not have a large role to play post the stimulus and the need of the hour was new ideas, which would help the industry.
Exports and 'technical textiles' will be key focus areas in the future, he said.
"However, Indian exporters are more dependent on the European and US markets. Both the markets have a tendency of parallel movement and they boom together and also fall together," Maran said.
Indian exporters should focus on other big markets as well. The entire US import market fell by 12.04 per cent, yet India maintained its exports' share and fell only by a smaller percentage of 7.56 per cent, Maran said.
"A similar trend is also seen in the EU market," he said.
On the sector's growth plans Maran said, "India's domestic textile consumption is third largest in the world. In this environment, we have targeted a growth path at 12 per cent for the next five years and global trade share of 7 per cent."
"We have to focus on the rural market. Malls and retail space created by malls are not the solution to increase the business," the minister added.
The much-awaited National Fibre Policy was ready and was likely to be announced in March, he said.
The government is concerned about the textile sector's growth and Finance Minister may accomodate the industry’s demand in the forthcoming Budget, added Maran.
Source : Business Standard