The sector accounts for nearly 12% share of the country's total exports basket accounting for 14% of industrial production employing 35 million persons, says the annual report of the Textiles Ministry.

The textile imports received a boost after 2004 when textiles exports quota were discontinued.

However, though exports did grow during the period from 2003-04 to 2007-09 and then declined by over 5% in 2008-09, but the volume as compared to some countries could not register a faster growth due to various factors such as constraints of infrastructure, high power and transaction cost, incidence of state level cess and duties and lack of state-of-the-art technology, said the report.

India continued to occupy second spot in production of silk during 2008-09 with mulberry accounting for 85% followed by Eri 11.1%, Tasar 3.3% and Muga 0.6%.

As regards exports of jute goods including floor covering, diversified jute products, jute yarns, hessian, it was to the tune of Rs 1375.80 crore during 2008-09 financial year, the report said.

The export of jute goods during 2009-10 (April-September) was Rs 534.61 crore. The Textiles Committee for promoting Handloom Mark sold as on November 30 last 138.33 lakh handloom mark labels to 5930 stakeholders.

It said 725 retail outlets are selling handloom goods with handloom mark label. The National Council of Applied Economic Research (NCAER) has been entrusted with the task of conducting the third Handloom Census and issue Photo Identity Cards to all eligible weavers and allied workers.

Census work in 12 States has already been completed and in rest of the States it is in progress.

Against the revised estimated size of 25.50 lakh handloom weavers household, 23.19 lakh households have already been covered till December 14 last and the census work is expected to be completed by this year.