Published on July 6, 2015
India is the world’s largest producer of the textiles and garments. Indian textile sector is one of the mainstays of the economy. It is also one of the largest contributing sectors of India’s export contributing 11% to the country’s total exports basket.
Recently, the Indian textile industry estimated at around US$ 110 billion is expected to reaches at around US$ 150 billion by 2021.
Now a day, Indian Government policy aims to achieve $300 billion textile exports by 2024-25 and foresees creation of further 35 million jobs, as per market source. The government policy also focused on providing investment opportunities for foreign companies across the specialty fabric and fabric processing for all type of natural and synthetic textiles, technical textiles etc.
The new policy intends to address adequate skilled workforce, labour reforms, attract more investments and provide a bright future road map for the textile and clothing industry.
India’s textiles sector is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India’s exports contributing 11 per cent to the country’s total exports basket. The textiles industry is labour intensive and is one of the largest employers. The industry realised export earnings worth US$ 41.57 billion in 2013-14.
The textile industry has two broad segments, namely handloom, handicrafts, sericulture, power looms in the unorganised sector and spinning, apparel, garmenting, made ups in the organised sector.
The Indian textiles industry is extremely varied, with a hand-spun and handwoven sector at one end of the spectrum, and the capital intensive sophisticated mill sector at the other. The decentralised power looms/ hosiery and knitting sector form the largest and knitting sector form the largest section of the Textiles Sector. The close linkage of the Industry to agriculture and the ancient culture, the traditions of the country make the Indian textiles sector unique in comparison to the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.
Market Size
The Indian textiles industry, currently estimated at around US $108 billion, is expected to reach US $ 141 billion by 2021. The industry is the second largest employer after agriculture, providing direct employment to over 45 million and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to GDP, and 14 per cent to overall Index of Industrial Production (IIP).
The Indian textile industry has the potential to grow five-fold over the next ten years to touch US$ 500 billion mark on the back of growing demand for polyester fabric, according to a study by Wazir Advisors and PCI Xylenes and Polyester. The US$ 500 billion market figure consists of domestic sales of US$ 315 billion and exports of US$ 185 billion. The current industry size comprises domestic market of US$ 68 billion and exports of US$ 40 billion, according to Mr Prashat Agarwal, Managing Director, Wazir Advisors.
Apparel exports from India have registered a growth of 17.6 per cent in the period April—September 2014 over the same period in the previous fin
