As per the latest official data, total FDI approved in the sector was just Rs 3,302.61 crore between August 8, 1991 (start of the economic reforms) and May 31, 2000. This means an investment of about Rs 350 crore a year during the last about nine years.

The textile industry accounts for a one-third of the total exports besides providing employment for a large labour force.

The garment segment of the industry is dominated by small-scale units and the current policy does not permit de-reservation of SSI items to attract more foreign investment and make it technologically competitive in the global market.

Yet another irritant for foreign companies is the stipulation requiring them to take an export onus of 50 per cent to manufacture SSI reserved items.

A group of ministers headed by home minister LK Advani is currently studying the issue of dereservation of SSI items, including garments, and other related matters.

The total exports of textiles and clothing (including jute, coir and handicrafts) increased from $ 12.55 billion in 1998-99 to $13.33 million in 1999-2000, representing an achievement of 37 per cent and 36 per cent respectively of the country's total exports in this period.

The target for 2000-01 has been set at $ 15.53 billion. As against this, exports in the first two months of the year were $ 2.31 billion, accounting for a 34 per cent share of the country's total exports in this period.

The break-up of the target is $ 6.5 billion for readymade garments, $ 4.75 billion for fabrics & made-ups (mill-made, powerloom and handloom) and cotton yarn $ 1.15 billion for man-made textiles and $ 2.24 billion for handicrafts.

The Apparel Export Promotion Council (AEPC) has set up training and design centres in various locations throughout the country for providing skilled manpower for the garment industry.

The council had participated in buyer-seller meets in Latin America, Australia, New Zealand and South Africa and in the international menswear cologne fair and Hong Kong fashion week. In addition, the council had fielded delegations to Latin America to explore new avenues. It has been organising India international garment fair and India knit fair for direct marketing and exposure to overseas buyers in respect of garments for autumn, winter and spring summer sessions separately every year.

The government has also initiated several measures to boost garment exports.

These include permitting garment units to import capital goods at a concessional duty of 5 per cent for export production under the export promotion capital goods scheme against a stiff export obligation.