NEW DELHI: The textile industry will touch a volume of $115 billion by 2012 growing at the rate of 16 per cent annually. 

While inaugurating the Woollen Expo at Godhra in Gujarat today, Union Minister of Textiles Shankersinh Vaghela said that investment in the textiles sector between 2004 and 2008 was Rs 1,04,506 crore and is expected to touch Rs 1,50,600 crore by 2012. This enhanced investment will generate 17.37 million jobs by 2012, an official statement said.

The Minister said cotton was the mainstay of the country's textile industry. Its production has reached a level of 31.15 million bales in the cotton season 2007-08 and the yield has reached over 550 kg per hectare.

India is the second largest producer, exporter and consumer of cotton. The competitiveness of our cotton is also reflected in the share of cotton in fibre consumption, which is 60 per cent of total fibre consumption. The share of cotton in the textiles and clothing exports is more than 75 per cent, he added.

The Minister said that Indian textiles and clothing exports were USD 21.46 billion in 2007-08, registering a growth of 12.10 per cent in dollar terms. It is expected that in 2008-09 the textiles and clothing exports will be 20 per cent more than what were achieved in 2007-08. The textiles and clothing exports have diversified into new markets like GCC, Africa, Latin America, Russia and Oceania.

Vaghela said 40 parks are being set up under the Scheme for Integrated Textile Parks (SITP) which will attract an investment of Rs. 21,502 crore, create employment both direct and indirect for 9.08 lakh workers and produce goods worth Rs 38,115 crore annually. Seven parks are being set up in Gujarat at Surat, Kutch and Kheda.