Research and Development (RD) is a rarely spelt word with respect to Indian textile industry, even though reports suggest that India is the future destination for RD outsourcing ($8 billion by 2010). The market for India's RD outsourcing is expected to grow form the present $1.3 billion to $8 billion in 2008. For textiles the RD expenditure as a percentage of net sales is 1.36. Successful textile companies of the 21st century will be those that manage knowledge to their advantage. The company that can source and apply knowledge to solve problems and develop technological differentiation in an environmentally sustainable manner will put the stress on its competitors. These companies will be the innovators who will prosper and expand. Any textile company must undertake evaluation process in order to select the best RD projects to help expand their business opportunities. This may be termed as "decision making process in RD investments". We would like to propose an evaluation tool for such process. An assessment of various types of project proposals is discussed in detail in this paper. Tools such as, 1. How or to what extent these projects are connected with the business or technology strategy of the company? 2. How can these projects contribute to both the business and future growth prospects of the firm? 3. Will the company be able to complete proposed RD projects with its current man power and technology? This work follows a non conservative approach to suggest the best possible investment decision making process for RD in textiles.
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