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:

Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

1980-81 78.24 78.60 170

1990-91 74.39 117.00 267

2000-01 85.76 140.00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 244.00 478

 2006-07 91.44 280.00 521

2007-08 94.39 315.00 567

2008-09 93.73 290.00 526

Though during the year 2008-09, 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, yet managed to retain its position as
world's second highest cotton producer.

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
 Huge unorganized and decentralized sector
 High production cost with respect to other Asian competitors

Cotton Exports from India

Year Quantity (in lakh bales of 170 kgs) Value (in Rs./Crores)

1996-97 16.82 1655.00

1997-98 3.50 313.62

1998-99 1.01 86.72

1999-00 0.65 52.15

2000-01 0.60 51.43

2001-02 0.50 44.40

2002-03 0.83 66.31

2003-04 12.11 1089.15

2004-05 9.14 657.34

2005-06 47.00 3951.35

2006-07 58.00 5267.08

2007-08 85.00 8365.98

 2008-09 50.00 N.A.

Year Quantity (in lakh bales of 170 kgs.) Value (Rs./Crores)

1996-97 0.30 56.42

1997-98 4.13 497.93

1998-99 7.87 772.64

1999-00 22.01 1967.92

2000-01 22.13 2029.18

2001-02 25.26 2150.01

2002-03 17.67 1789.92

2003-04 7.21 880.10

2004-05 12.17 1338.04

2005-06 5.00 695.77

2006-07 5.53 752.29

2007-08 6.50 986.33

2008-09 7.00 N.A.

Current Facts on India Textile Industry

 India retained its position as world’s second highest cotton producer.

 Acreage under cotton reduced about 1% during 2008-09.
 The productivity of cotton which was growing up over the years has decreased in 2008-09.
 Substantial increase of Minimum Support Prices (MSPs).
 Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices.
 Imports of cotton were limited to shortage in supply of Extra Long staple cottons.