Gulf investors interested in Indian textile sector

Gulf investors interested in Indian textile sector
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First Published: Tue, Feb 05 2008. 11 14 AM IST
Updated: Tue, Feb 05 2008. 11 14 AM IST
Dubai: UAE investors are keen to invest in India’s textile sector where the government is giving several incentives including allowing 100% equity in SEZs, a senior Indian minister said.
“We got a very positive response from potential investors,” said Shankersinh Vaghela, Union Textiles Minister, who is leading a delegation of textile ministry and industry on a four-nation tour of Turkey, Greece, Egypt, and the UAE.
Insisting that the “Made in India” brand had better credibility than Chinese products, he said the Gulf region held immense potential for Indian textile exports.
“There is no point comparing Chinese textiles with Indian goods. We cannot compete with the Chinese in terms of price but the brand credibility of Indian products is better across the world,” Vaghela said.
With Indian government taking series of initiatives to boost textile exports, the Gulf region could emerge as an important destination for Indian manufactures, the Minister said.
“There is a lot of scope for the export of Indian textile and related goods in the Gulf countries as till now India is exporting its two third textile products to the US and European countries,” he added
At present, India’s textile and garment exports to the UAE total $1.068 billion out of the total $12 billion exports to the country. India’s total textile exports were $19 billion.
The minister said the delegation had fruitful talks with government leaders, local business representatives and members of the Indian textile community in Dubai.
“We spoke about the incentives given by the Indian government for investors in the UAE in the textile sector. The talks are in the primary stages,” the minister said.
Vaghela met UAE’s Minister for Economy and Trade Shaikha Lubna al Qasimi in Abu Dhabi where the two leaders discussed investments in the textile sector in India. “The UAE minister reacted positively to our presentations,” he said.
The minister said the delegation had “positive talks” with officials in Egypt, Turkey and Greece.
On the challenges facing India’s textile sector, he said the government had given many sops to exporters who are under presure due to the rupee appreciating by nearly 15%
“The situation is much better with the exports expected to reach the target,” Vaghela said. India had targeted $25 billion exports in 2007-06 fiscal.
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First Published: Tue, Feb 05 2008. 11 14 AM IST