Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 45 : FDI in Apparel

Government Initiatives in FDI

• Foreign Direct Investments (FDI) up to 100% is allowed in this sector through the automatic route by the Reserve Bank of India.
• The governments provide quality cotton raw materials at reasonable price to the manufacturers.
• The governments facilitate the technological advancement in the textile industries; the Technology Up-gradation Fund Scheme (TU FS) was set up by government.
• The Scheme for Integrated Textile Park (SITP) is set up to provide world standard infrastructure facilities.

The Ministry of Textiles has launched a special cell for attracting FDI in textile industries. The main objective of this cell is attracting FDI to India. This cell helps the willing foreign companies to find out viable partners meant for floating a joint venture company in order to produce textile products.

To help foreign companies find partners intending to float a joint Venture company to produce textile products.
The FDI cell operates with the following objectives:

1. To provide assistance and advisory support (including liaison with other organizations and State Governments)
2. Assist foreign companies in finding out joint venture partners
3. To sort out operational problems
4. Maintenance and monitoring of data pertaining to domestic textile production and foreign investment