India Textile Industry

India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

Various Categories
Indian textile industry can be divided into several segments, some of which can be listed as below:
• • • • • •

Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and Coir

The Industry India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades:

00 280.39 2008-09 93.00 136.00 140.00 Yield kgs per hectare 92 124 106 170 267 278 308 302 399 470 478 521 567 526 1950-51 56. yet managed to retain its position as world's second highest cotton producer.77 2006-07 91.30 2004-05 87.00 244.Year Area in lakh hectares Production in lakh bales of 170 kgs 30.30 2002-03 76.00 158.00 290. Strengths • • • • • • • • Vast textile production capacity Large pool of skilled and cheap work force Entrepreneurial skills Efficient multi-fiber raw material manufacturing capacity Large domestic market Enormous export potential Very low import content Flexible textile manufacturing systems Weaknesses • • • • Increased global competition in the post 2005 trade regime under WTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management .63 78.60 117.73 Though during the year 2008-09.00 243.86 2005-06 86.00 179.00 315.48 1960-61 76.62 56.78 1970-71 76.39 2000-01 85.41 47.05 1980-81 78. the industry had to face adverse agro-climatic conditions. it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year.76 2001-02 87.67 2003-04 76.24 1990-91 74.44 2007-08 94.

15 657.21 12.72 52.35 5267.87 22.26 17.67 7.00 85.64 1967.01 0.10 1338.98 N.) 0.50 0.00 50.00 58.62 86.14 47.01 1789.13 25.42 497./Crores) 56.93 772.83 12.60 0.08 8365.18 2150.A.30 4.00 Value (in Rs. Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Quantity (in lakh bales of 170 kgs.50 1./Crores) 1655.17 5.15 51.65 0.• • Huge unorganized and decentralized sector High production cost with respect to other Asian competitors Cotton Exports from India Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Quantity (in lakh bales of 170 kgs) 16.92 880.43 44.82 3.40 66.11 9.31 1089.34 3951.13 7.04 695.01 22.00 Value (Rs.00 313.92 2029.77 .

Globalization of Indian Textile Industry The initiation and development of globalization and Indian textile industry took place simultaneously in the 1990s. The aggressive policy that was undertaken for the rapid development of globalization and Indian textile industry were really praiseworthy. Further.2006-07 2007-08 2008-09 5. the contribution of the Indian textile Industry towards the gross domestic product (GDP) of India is around 3% and the numbers are steadily increasing. Substantial increase of Minimum Support Prices (MSPs). The Indian textile industry. until the economic liberalization of Indian economy was predominantly an unorganized industry. This policy envisaged to address the following issues - . Current Facts on India Textile Industry • • • • • • India retained its position as world’s second highest cotton producer. was effected by the Ministry of Textiles under the Government of India.50 7. which presently stands at 14%.29 986. Furthermore. The initiation and its subsequent development of globalization and Indian textile industry respectively. Imports of cotton were limited to shortage in supply of Extra Long staple cottons.33 N. Acreage under cotton reduced about 1% during 2008-09. The Indian textile industry is one of the largest textile industries in the world and India earns around 27% of the foreign exchange from exports of textiles and its related products.A. Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices. The economic liberalization of Indian economy in the early 1990s led to stupendous growth of this Indian industry.53 6. The process of globalization and Indian textile industry development was the effect of rapid acceptance of 'open market' policy by the developing countries. much in the lines of the developed countries of the world. globalization of India textile Industry has seen a paradigm increase in the 'total industrial production' factor of this Industry. The productivity of cotton which was growing up over the years has decreased in 2008-09.00 752. The most significant step amongst them was introduction of "The National Textile Policy 2000".

175 Bed covers. this policy also aims at increasing the foreign exchange earnings to the tune of US $ 50 billion by the end of the year 2010. The globalization of the Indian textile sector was the cumulative effect of the following factors • • • • • • • • Huge textile production capacity Efficient multi-fiber raw material manufacturing capacity Large pool of skilled and cheap work force Entrepreneurial skills Huge export potential Large domestic market Very low import content Flexible textile manufacturing systems The Indian textile industry consist of the following sectors • • • • • • • Man-made Fiber Filament Yarn Industry Cotton Textile Industry Jute Industry Silk and Silk Textile Industry Wool & Woolen Industry Power loom Sector An approximate number of textile manufacturing companies operating in India are given below • • • • • • Badges. This is because the unorganized textile manufacturing sector in India accounts for 76% of the total textile production. this policy also envisages the inclusion of the huge unorganized and decentralized Indian textile sector under the organized textile industry.• • • • • • Increased global competition in the post 2005 trade regime under WTO Huge import volume of cheap textiles from other Asian neighbors High production cost with respect to other Asian competitors Use of outdated manufacturing technology Poor supply chain management and huge transit cost Huge unorganized and decentralized sector Further.270 Embroidery and embroidered garments.3013 Yarns and threads . It includes rational projections for the overall development and promotion of all the sectors involved directly or indirectly with the Indian textile industry.848 Fabrics and textiles .1201 . emblems ribbons and allied products . Furthermore. curtains.2471 Carpets and rugs . cushions and other draperies . made ups and furnishing .

from USD 23 billion to USD 30 billion.2936 Miscellaneous garments.337 Kids apparel and garments -1052 Ladies apparel and garments . Role of Textile Industry in India GDP Role of Textile Industry in India GDP has been quite beneficial in the economic life of the country. that is. During this era. the local market witnessed a growth of USD 7 billion. The worldwide trade of textiles and clothing has boosted up the GDP of India to a great extent as this sector has brought in a huge amount of revenue in the country. the Indian textile industry employs around 35 million personnel directly and it accounts for 21% of the total employment generated in the economy. Globalization of the Indian textile industry has also facilitated introduction of modern and efficient manufacturing machineries and techniques in the Indian textile sector. Some of the important benefits offered by the Indian textile industry are as follows: • • • India covers 61 percent of the international textile market India covers 22 percent of the global market India is known to be the third largest manufacturer of cotton across the globe . woolen garments.2932 Men's' apparel and garments . textile and leather accessories . Thus. In the past one year. The textile industry in India is claimed to be the biggest revenue earners in terms of foreign exchange among all other industrial sectors in India. which has made it one of the most advantageous industrial sectors in the country. The export market increased from USD 14 billion to USD 19 billion in the same period.239 The overall growth of the Indian textile industry can be attributed to the globalization. dyeing and finishing chemicals . This industry provides direct employment to around 35 million people.468 Textile chemicals. there has been a massive upsurge in the textile industry of India. Today. The industry size has expanded from USD 37 billion in 2004-05 to USD 49 billion in 200607.1201 Wool.1658 Yarns and threads . blankets and accessories . much of India's economic growth is largely dependent on textile manufacturing and exports. The textile industry is one of the leading sectors in the Indian economy as it contributes nearly 14 percent to the total industrial production.• • • • • • • • Jute products .

Canada.• • • India claims to be the second largest manufacturer as well as provider of cotton yarn and textiles in the world India holds around 25 percent share in the cotton yarn industry across the globe India contributes to around 12 percent of the world's production of cotton yarn and textiles The Role of Textile Industry in India GDP had been undergoing a moderate increase till the year 2004 to 2005. Turkey and Japan Ready made garments accounts for 45 percent share holding in the total textile exports and 8.14 billion. from 2004 to 2007.85 billion within three years. India holds 36 percent share in the global textile market as has been estimated during April-October 2007 The technical textiles market in India is assumed to touch USD 10. where India has a marked presence include UAE. 2005-06. Bangladesh.5 to 4 percent share in the total textile production across the globe and 3 percent share in the export production of clothing.76 billion by the year 2014-15 By 2010.69 million in the year 2006-07. the investment ratio in textile industry is most likely to touch USD 38. Saudi Arabia. It has been assumed that by the year 2012. China. which apparently stands at USD 654. Indian textiles industry has been witnessing a robust growth and reached almost USD 17 billion during the same period from USD 14 billion in 2004-05.09 billion during 2005-06. which is approximately double. But ever since. USA holds 10 percent and 32.2 percent in export production of India Export production of carpets has witnessed a major growth of 42.94 billion to USD 7.32 million during 2004-05 to USD 930. The growth in textile production is predicted to touch USD 19. It is also assumed to touch USD 19. FDI Inflows to Textiles . Indian textile industry holds 3. Few other global countries apart from USA and Europe. The investment range in the Indian textile industry has increased from USD 2.62 billion during 2006-07.63 billion by 2007-08 from USD 5. India is expected to double its share in the international technical textile market The entire sector of technical textiles is estimated to reach USD 29 billion during 2005-2010 The Role of Textile Industry in India GDP also includes a hike in the investment flow both in the domestic market and the export production of textiles. USA is known to be the largest purchaser of Indian textiles.23 percent. At present. Following are the statistics calculated as per the contribution of the sectors in Textile industry in India GDP: • • • • • • • India holds 22 percent share in the textile market in Europe and 43 percent share in the apparel market of the country.6 percent shares in Indian textiles and apparel.

Benetton. Gokaldas. mainly in the state of Gujarat and Maharashtra. Ahmedabad. Diesel. Indian textiles industry-At a glance The Indian textiles industry is a highly established sector. De Witte Lietaer. Armani. highly skilled and effective human resources. FDI Inflows to Textiles-Facts • The textiles industry in India is experiencing an increase in the collaboration between national and international companies International apparel companies like Hugo Boss. Liz Claiborne. Barbara. Ahlstorm. The Indian textiles sourcing market is expected to grow at the rate of 12% per year. The advantages of the Indian Textile industry are fully equipped manufacturing units. India has been known for its textiles all over the world. Vincenzo Zucchi. Arvind brands. in Gujarat is called the 'Manchester of India'. Vardhman Group. advanced designing capabilities. etc • FDI Inflows to Textiles-Government Initiatives • • • • • Foreign Direct Investments (FDI) up to 100% is allowed in this sector through the automatic route by the Reserve Bank of India In order to provide quality cotton raw materials at reasonable price to the manufacturers. The textile industry is concentrated in the western belt of the country. Raymond. India has good scope of becoming the global textile and apparel sourcing center. Kanz. Marzotto. Esprit. Levi Strauss. Welspun. the Technology Upgradation Fund Scheme (TUFS) was set up. In the future. etc have already started their operations in India and these companies are trying to increase it to a considerable level National and the international companies that are involved in collaborations include Rajasthan Spinning & Weaving Mills. The market value is US$ 22-25 billion which is expected to grow to US$ 35-37 billion by the year 2011. the Technology Mission on Cotton was launched In order to facilitate the technological advancement in the textile industry. The Scheme for Integrated Textile Park (SITP) is set up to provide world standard infrastructure facilities The reservations for the small scaled units in textiles were abolished .FDI Inflows to Textiles industry in India enhanced the growth of the sector. vast multi-fiber raw material base. after a place which was famous for its textile mills. Jockey. Baird McNutt.

Sign up to vote on this title
UsefulNot useful