Undeterred by the poor showing of textile exports after the dismantling of the quota system in January, the government has set a high target of 20 per cent growth to touch $50 billion annual exports by 2010.
Outlining a strategy for the current fiscal, Textiles Minister Shansinh Vaghela said the government was looking at 20 per cent growth in exports this year in the face of pick up in the first two months of 2005-06.
Vaghela said the ministry has already held a stock-taking meeting with exporters and their promotion councils to ensure that export performance remains upbeat.
Pointing that the dip in exports in January-March, 2005 was mainly on account of the Duty Entitlement Passbook Scheme and drawback rates, he said his ministry had already taken up the issue at higher levels.
Textile exports in 2004-05 declined by 3.72 per cent to Rs 53,996 crore (Rs 539.96 billion) from Rs 56,082 crore (Rs 560.82 billion) in 2003-04, according to commerce ministry figures.
Unveiling a document on his ministry's performance, 'Textile turnaround, 2004-05', Vaghela said the government was looking at consolidating the gains including investments to the tune of Rs 30,000 crore (Rs 300 billion) in the sector and promoting 'Made in India' brand globally in a big way this fiscal.
He said his ministry was also pushing for labour reforms for the sector to spur growth and generate employment.
The minister said the government was working on a cluster scheme, which would be unveiled shortly and bring out a marking scheme for handloom fabrics on the lines of silkmark to promote this sector.