Subrata Basu (left), chief commissioner of customs, V. K. Ladia, chairman of SRTEPC-ER, in Calcutta on Friday. Picture by Kishor Roy Chowdhury

Calcutta, Feb. 4: The domestic textile goods production shall reach $85 billion by 2010 from the current level of $36 billion, according to Crisil.

Synthetic and Rayon Textiles Export Promotion Council (eastern region) chairman V. K. Ladia said, ?The council had appointed Crisil to prepare a vision statement for the export opportunities of domestic textiles and McKinsey has conducted study based on the data provided by them.?

With the lifting of quotas and an increase in the local consumer market, the industry should be able to achieve a cumulative annual growth rate of 11 per cent.

Of the current production value of $36 billion, exports constitute $12 billion, while domestic consumption is $24 billion. Of the targeted $85 billion by 2010, exports would constitute $40 billion and the rest will be consumed at home.

Exports would constitute $24 billion worth of higher value-added garments and the remaining will be made-ups including towels, lines, upholstery and tapestry.

?There exists a huge opportunity in the garment manufacturing sector. Garments constitute 60 per cent of the total exports and each piece is priced at $4-15,? added Ladia. The growth in the sector will also create 12 million jobs.

To sustain the growth rate, the industry needs to adopt certain measures, said Ladia at a seminar on export opportunities for Indian textiles organised by the Synthetic and Rayon Textiles Export Promotion Council, eastern region (SRTEPC-ER).

The industry requires a total investment of Rs 1,40,000 crore, of which Rs 85,000 crore will be from banks and the remaining from the capital markets and internal accruals of companies.

?Three leading institutions, including IDBI, ICICI Bank and State Bank of India, have agreed to finance the requisite Rs 85,000-crore expansion programme,? said Ladia.