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Maharashtra has an excellent infrastructure to play a key role in the growth of the textiles industry. It accounts for about 65 million kg of cotton production which is 25% of the country's total. The textile industry of the State holds a strategic importance in the country as it is the single largest employer and contributes around 27% of India's total exports. The state contributes 10.4 per cent to the country's textile and apparels output. Also, the state accounts for 10.2 per cent of the country's employment in the sector. It produces nearly 272 million kg of cotton yarn or 12 per cent of India's total production. It has an installed capacity of 1.66 million spindles, equivalent to 17 per cent of the country's capacity.

It also holds immense future potential in global markets, particularly in value added segments like garments and ready-to-wear goods. Besides, the textile parks are being set up in Maharashtra in order to maintain its leadership position in textile exports and production. These Textile Parks are aimed to provide world class infrastructural components for textile sector and enhance its productive capacity.

The phasing out of the export quota is expected to provide a fillip to the textile industry in the country. With the global trade in textile and clothing expected to grow from US$ 356 billion at present to US$ 600 billion by 2010, the state has an opportunity to leverage its existing strengths to capture a larger share of the textile market.

The state's key competitive advantage in the textile industry is the abundant availability of raw material (cotton) and large base of a skilled workforce. The State Government is also taking steps to strengthen the textile industry in the state by establishing textile parks at Nagpur, Dhule and Ambernath. The key players in the state include Bombay Dyeing, Century Textiles and Raymond.

Raymond plans to expand its denim manufacturing capacity at Yavatmal from 20 million meters per annum to 30 million meters per annum at a total project cost of US$ 28 million. Carrera Holding Inc proposes to set up a green-field textile project in the country with an estimated investment of US$ 130 million at Kolhapur. The company has identified two locations in India, one of which is the SEZ near JNPT port near Mumbai.