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Indian Textile Industry: Growth & Current Scenario
Mr. Tanange K. R. Assistant Professor, Department of Economics , Omkar’s Arts, Commerce & Science College, Gadhinglaj. Maharashtra email@example.com
Introduction The Indian textile industry contributes a very important role in Indian economy. It is one of the leading textile industries in the world. Through it was predominately industry even a few year 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. This is now successfully become one of the largest industries in the world. Indian textile and clothing industry contributes about 4% of GDP and 14% of Industrial output and it is the second largest employer after agriculture, it is estimated that industry provides direct employment to 35 million people including substantial segments of weaker sections of society with a very low important intensity of about 1.5% only, it is the largest net foreign exchange earner in India, earning almost 35% of foreign exchange. Objectives: This paper is mainly focuses on the following objectives. i) To know India’s position in world textile economy. ii) To analyze the percentage growth rate in textile industry. iii) To examine the cotton and manmade spinning mills. iv) To compare the textile export with overall exports in India. v) To understand the supportive government policies of the textile economy in India. vi) To study problems of textile industry.
Facts of Indian Textile Industry
India is the second largest producer of cotton yarn. 4% contribution to GDP 2nd largest producer of cotton 14% contribution to industrial production 17% contribution to export earning Direct employment to more than 35 million people India is the largest in loomage Concluding handloom in the world and contributes about 61 percent to the world loomage. 8. Strong and Diverse raw material base 9. Second largest exporter of yarn 10. Globally competitive spinning industries. 11. Strong presence in entire textile value chain. Structure of Textile Industry: The industry is made up of two sectors namely well organized (i.e. textile mills) and unorganized or decentralized sector.
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Cyber Literature: The International Online Journal - Literature, Humanities & Communication Technologies
The period of present study analysis Cyber Literature: The International Online Journal . books etc. So I have focused on India’s position in world textile economy. export and employment. Next only to agriculture in terms of production. Humanities & Communication Technologies 25 . About one of India’s populations depends on it for their livelihood. development of spinning mills. mean. In order to process the data various statistical tools such as percentage. These are a) Spinning mills : Producing yarn only b) Composite mills : Engaged in the both spinning & weaving Activities These mills can be again classified as i) Course and Medium Composite mills and ii) Fine and superfine composite mills The Textile Manufacturing Process – Statement of the Problem The Indian Textile Industry. The study of Indian textile Industry is necessary in the present area. ministry of textile. the performance growth rate in textile. textile journals. trends in textile export etc. trend analysis. standard deviation are used. Data and Methodology The necessary data collected from secondary sources website like textile world. world trade organization and other related websites.Volume 3 Issue 2 (December.Literature. 2010) ISSN 0972-0901 a) The textile industry consists of two categories in the organized sector.
In terms of installed capacity of spinning machinery it ranks second after china while in weaving its ranks first in plain handlooms and fourth in the shuttle looms.1% in may 2008.No.8 11. This period shows various changes in Indian textile industry.43 8. India’s Position in World Textile Economy The Indian textile sector is also well placed globally as indicated by the statistical figures mentioned in table-1.4 3.0 0.0 4.5 -15.9 0. Cotton Textiles 2. Mn. 1.8 in Cyber Literature: The International Online Journal .7 7. Global recession is one of them.41 6.04 40.44 2.5 2008-09 -1.45 14. Silk & MMF Textiles 3.67 39.2 The fact.5 14.No. 2010) ISSN 0972-0901 begins from 2002-03 to 2009-10.5 -24.29 1.5 6.No.0 0.8 4.8 -10.2 8. 202.33 0.7 33. The impact of the global and domestic economic slowdown directly affect the performance of the industry.55 6.3 0. Wool. the decline in IIP for textile started from June of 2008 year onwards.90 84. Table 1: India’s Position in world Textile Economy Unit World India India as % of World India’s Rank in the world Country with first Rank Installed Capacity A) Spining – 2006 Spindles (Cotton System) Spindles (Wool) Spindles (Coon & Wool) Roters B) Weaving – 2006 Shuttle Looms Shuttle Looms Handlooms Mn.No. Mn. 4.94 18.7 1.0 5.98 217.Volume 3 Issue 2 (December.60 19.5 8. Vegetable Fiber Textiles (Expect Cotten) Total Textile Section (1 + 2 + 3 + 4) Table .27 Mn.1 7. Humanities & Communication Technologies 26 .6 3.00 Mn.8 3.8 7.No. Textile Products (Including Garment) 4.2 2009-10 5. The industry which was growing at 3-4 percent during the last six decades has now accelerated to annual growth rate of 9-10 percent but various factors have effecting annual growth rate of Textile Industry.92 2 3 2 5 4 11 1 China China China Russia China China India Mn. Index of industrial production (IIP) data has been released by the central statistical organization (CSO) shows a dismal picture of textile production as can be seen for the Products Table 2: Percentage Growth in Textiles 2005-06 2006-07 2007-08 8.0 16.No.78 Source : Ministry of Textile Website Performance of the Textile Industry: The Indian textile industry is in a stronger position than it was in the last six decades. after a reasonable growth of 6.05 5. 4. the output and profitability of the industry have taken a nose dive in recent months.5 in June.No. Mn. -1. While cost of raw materials and inputs remain in competitive in comparison with competing countries.Literature.01 45. the growth in the index declined to 4.3 0.
63) (100) 1608 176 177 318 63 481 (88.00) (72.11) (100.28) (27.12) (19.29 (9.Volume 3 Issue 2 (December.00) 79. Table 3: Cotton and Man Made fiber mills and closure position (Non SS1) Year No. of Mills Spinning 31/03/02 31/03/03 31/03/04 31/03/05 31/03/06 31/03/07 31/03/08 31/03/09 31/03/10 31/11/10 Composite Total No.05) (100) 1653 180 1853 365 68 333 (90.33) (14. The cotton and manmade fiber mills in India The first Indian modernized successful mill was established in 1854 at Bombay by KGN Daber.88) (100) 1570 200 1808 380 87 467 (88.30) (15. 2010.07) (9. 2010) ISSN 0972-0901 Jul-4. 2 shows the cotton and manmade fiber mill in India from the period 2002 to 2010. During the planning period this industry not only made remarkable development but also established mile stone in international markets Table No.00) (80.00) (83.00) (83.00) (79.72) (100.67) (100) Source Ministry of Textile report 2010-11 Figures in bracket indicates percentage Export of Textile Industry The Indian Textiles Industry is an export intensive industry and about one third of its total production is exported in some form or the other. The 50 percent Cyber Literature: The International Online Journal .74) (100) 1564 223 1787 374 94 468 (85.20) (11.93) (100) 1599 276 1875 349 134 483 (85.48) (100.91 (20.52) (12.5 in August -4.71) (100. of spinning mill at the end of Nov.16) (20.95) (16.09) (100) 1564 223 1789 376 99 475 (87.45) (100. Since 1854 the number of cotton mill has been rapidly increasing.00) (81.00) (85.33) (9.47) (16.07) (29.947 mills in the country (1763 spining mills and 184 composite mills) There were 552 closed mills by the end of Nov.80) (100. 2010.94) (9.70) (100) 1673 184 1947 471 81 552 ()90. through export friendly government policies and positive effort by the exporting community. Truly speaking this mill only laid the foundation stone of modern cotton industry in India.47) (100.28) (12.00) (84.53) (11.28) (14. India’s five year plans proved a boom to cotton Industry.00) (70.67) (100.93) (100.1 in October 2008 by now the cumulative position has become positive trend.89) (15.84) (100) 1566 210 1780 387 96 483 (87.9 in September -7.06) (100. there were 1.53) (100) 1597 177 1830 340 65 405 (90. There in an increasing trend of No. of Mills Closed Spinning Composite Total 1579 281 1860 295 126 421 (84. Humanities & Communication Technologies 27 .37) (18.Literature.
62% 12. Silk Products.00 126262.96 22418. Till 31st December 2004.10% 12. The exports of textiles and clothing till 2004-05 have grown at a moderate pace.43 million 2009-10. textile export increased from in US$ 153018.68 143567. 2010) ISSN 0972-0901 exports of the entire textile are the readymade garments. 2005 (Post Multi Fiber Agreement) provision of free trade was made. Jute and Coir. Cyber Literature: The International Online Journal .54% Source : Department of Commerce NIC & DGCI & S. However there was registered sharp growth in 2005-06.86 153018. readymade garments and accessories.53 18519.22 178751. Kolkata.53 19146. This is followed by handicrafts. Supportive Government Policies of the Textile Economy in India The Government has taken several positive steps detailed below. This scheme envisages the creation of textile parks in the public and private partnership mode currently 30 parts are in various stages of implementation and 50 more are planned for the next five year.04 19558.95 17520. There was further loss of 15% to 20% due to recession that struck the world in the year 2008.22 million in 2008-09 to US$ 178751. opportunities are numerous and the product should be sent to any country that is willing to trade.Volume 3 Issue 2 (December. most of which is cotton.Literature.16% 13. Due to this amount of foreign exchange has been reduced in India.99% 15. Table 4: Textile Exports Statistics Textile Export US$ Total Exports US$ Millions Millions 14026.07 103090. i) Integrated Textile Parks Scheme : In order to a world class infrastructure for textile units as well as facilitate the needs for them to meet international social and environmental standards. export were regulated by a Quota an agreement a foreign country would give a quota saying that they would by a particular amount of textile from India On 1st January.72 83535. Humanities & Communication Technologies 28 . The volumes went up in the financial year 2005-06 and from the next financial year the volume of India rupee was devalued. After recession period. Woolen Textile. Now all doors are open.43 Financial Year 2004-05 2005-06 2006-07 2007-08 2008-03 2009-10 Percentage of Textile Exports 16.79% 16.
5 percent. iv) Fiscal Rationalization : Budget of 2006 shows that the excise duty on all manmade fibers and yarns was reduced from 16 percentages to 8 percentages. South Koria. 6. The Indian Textile Industry is also globally well placed. 1999 for the five year initially and which has now been extended up to 2011-12. 5. Humanities & Communication Technologies 29 . 3. There is an increasing trend of number of spinning mills. 8. 2. iii) Technology Mission on Cotton : In February 2000. improving quality and reduction of contamination in cotton. The plant and machinery and technology by a number of units are absolute. if ranks second after china.Volume 3 Issue 2 (December. while weaving it ranks first in plain handlooms and fourth in the shuttle looms. Index of Industrial production shows the dismal picture of textile production the decline in IIP for textiles started from June 2008 year onwards by now the cumulative position has became positive trend. in teams of installed capacity of spinning machinery. 2010 there were 1. China and Japan. Cyber Literature: The International Online Journal . Government regulations like the obligation to produce controlled cloth are against the interest of the industry. we arrive at the following conclusions – The textile industry of India contributes nearly 14% of the total industrial production and also contributes around 3% to the GDP and currently generates employment for more than 35 million people of the country. 2010) ISSN 0972-0901 ii) Technology Upgrading fund Scheme : To facilitate technological upgrading in the sector. lack of finance. Competition from the man made fabrics and synthetics. India has been facing severe competition from other countries like Taiwan. Problem of Textile Industry in India The cotton textile industry is reeling ender manifold problems. The industry faces number of other problems like power cuts. 7. exobitant rise in raw material prices and production costs etc.Literature. 4. The scheme provides for reimbursement of 5 percentage interest paid on term loans for technological upgrading of textile machinery. 2007’s budget carried it forward by reducing the custom duties on polyester fibers and yarns from 10 percent to 7. the major problems are the following – 1. Highest incidence of sickness 2. infrastructural problems. the government launched the Technology mission on cotton with the objective of addressing the issue of rising productivity. After the study. The cotton textile industry is frequently plagued by labour problems. The cotton yield per hectare of land is very low in India. At end of Nov. 2010. 4. the Government launched Tufs with effects from 1st April. Conclusions: 1.947 mills in the country there were 552 closed mills by the end of Nov. 3.
com 13. Industral Economies. 4. www. 6. New Delhi.business.textilecommittee.com 12. www. Delhi. www.economywatch.textilereview. Indian Economy P. Himalaya Publishing House. Upkar Prakashan.com 10. Indian Economy P:558. Tufs.indianbusiness. 7. Chand & Company Ltd. 2010. 1994. The Government has taken several positive steps of the textile economy in Indian as like Integrated Textile Parks Shames. Oct. 5.457. Dr. The comparison of overall export to textile export to textile export. Anupam Agrawal.450.nic. Misra & V. Indian Economy P. Agra 2008. Humanities & Communication Technologies 30 . S. KPM Sundharam. Puri. 2009-10 6. Economic Survey. K. Technology mission on cotton. Refinances 1. 2. April 2010.Literature.texprocil. 2006. Himalaya Publishing House. Pratiyogita Darpan.in 8. www. 2006.110. Ruddar Datt. 2009. K.mapsofindia.toxmin.Volume 3 Issue 2 (December. fiscal rationalization etc..in 11. Francis Cherunilam. Indian Perspective p.nic. S. the period of 2005-06 there is downward trend for textile export. www. Textile Review – Nov. www.com Cyber Literature: The International Online Journal .com 9. www. 3. 2010) ISSN 0972-0901 5.
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