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Significance of India's Textile Industry

The textile and clothing industry in India is an important sector that contributes significantly to industrial production, GDP, exports, and employment. It accounts for 14% of industrial output, 4% of GDP, 17% of exports, and employs over 35 million people directly and 50 million indirectly. India has the highest number of looms and second largest number of spindles globally. The industry generated $55 billion in 2008-2009, with a goal of reaching $100 billion by 2015. It is the largest foreign exchange earner and its exports grew strongly after trade quotas were removed. The domestic market is also growing due to economic and demographic factors. The industry is modernizing and the government is promoting it through various schemes.

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Muhammed Navaz
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332 views12 pages

Significance of India's Textile Industry

The textile and clothing industry in India is an important sector that contributes significantly to industrial production, GDP, exports, and employment. It accounts for 14% of industrial output, 4% of GDP, 17% of exports, and employs over 35 million people directly and 50 million indirectly. India has the highest number of looms and second largest number of spindles globally. The industry generated $55 billion in 2008-2009, with a goal of reaching $100 billion by 2015. It is the largest foreign exchange earner and its exports grew strongly after trade quotas were removed. The domestic market is also growing due to economic and demographic factors. The industry is modernizing and the government is promoting it through various schemes.

Uploaded by

Muhammed Navaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Importance of Textiles &

Clothing Industry in Indian


Economy

Simi Balakrishnan
CUTS International

1
An Overview
 Indian textiles and clothing (T&C) industry is extremely
varied
 Industry contributes about…
 14% to industrial production
 4% to GDP
 17 % to country's export earnings
 Largest provider of employment after agriculture
 Direct employment to over 35 mn people
 50 mn engaged in allied activities
 Self reliant in the entire value chain – fibre to fashion
 Supports agriculture in over 9.5 million hectares of land where
cotton is cultivated.
2
India has..

 Highest number of looms (1.8 mn shuttle looms;


200,000 shuttle-less looms; 3.9 mn handlooms)
 2nd largest number of spindles in world (40 mn
spindles)
 1st in Jute production (1,900 mn kg)
 2nd in silk production (15 mn kg raw silk)
 2nd in cotton production (2,700 mn kg cotton fibre)
 2nd in cotton exports (2,000 mn kg)
 5th in man-made fibers production (2,000 mn kg)
 8th in production of wool (51 mn kg)
3
India’s T&C Industry…
 Generated US$ 55 bn in 2008-09 (Domestic market- 33.4
bn; exports- 21.6 bn)
 Envisages to reach US$ 100 bn by 2015 (Domestic
market- 57 bn; exports- 43 bn
 Contributed 12.5% to India’s total export in 2009-10
 Holds 4% of global T&C exports
 Largest foreign exchange earning sector
 Registered strong growth in post quota period –
 US$ 14.03 bn in 2004-05 to US$ 22.15 bn in 2007-08
 but declined in 2008-09 to US$ 20.94 bn
 and increased in 2009-10 to US$ 22.42 bn 4
Segment-wise Exports 2007-2010 (US$ mn)
.
Source: Ministry of Textiles, Annual Report 2010-11

Category 2007-08 2008-09 2009-10


Cotton Textiles 6858.63 4803.52 5711.41
Manmade 3177.11 3325.88 3970.88
Textiles
Silk 657.72 684.93 596.05
Wool 443.11 484.75 470.20
Ready Made 9069.80 10383.26 10064.73
Garments
Handicrafts 1452.28 1090.77 961.67
Jute 327.86 303.21 218.40
Coir & Coir 160.25 150.02 160.60
Prod.
Total 22146.78 21226.34 22418.79 5
T&C Exports from India - Top ten countries
Country % Share [2008-09]
USA 20.38
UAE 8.27
UK 7.53
Germany 6.11
France 3.80
Italy 3.76
China 2.54
Spain 2.76
Bangladesh 2.45
6
Netherlands 2.44
EU-27 Textile Imports
Country Growth % Share % Share %
2009 2008
China -12.9 29.2 29.8
India -15.6 10.6 11.2
Turkey -15.3 16.7 17.5
Pakistan -9.7 7.8 7.7
Source: Federation of Indian Chambers of Commerce and Industry
7
Domestic Demand Drivers

 More than 60% of T&C production for domestic


market
 Buoyant domestic economy
 Helpful demographic profile and increase in working
female population
 Organized retailing a driver for increased
consumption.

8
International Demand Drivers

 Dismantling of quotas
 Increase in sourcing of textiles by developed markets
from developing countries.
 Apparel spending remains significant in life style
products category in developed world.

9
Projected Market for Indian T&C – 2015
.
Source: Confederation of Indian Textile Industry

Total T&C market US$ 100 bn

Domestic Market US$ 57 bn


Exports Market US$ 43 (57%)
bn (43%)

Domestic Domestic
Textile Apparel Textile Apparel
Export Exports Market Market
US$ 22 bn US$ 21 bn US$ 28 bn US$ 29 bn
10
Promotion of Textiles Sector in India
 Sector is modernizing rapidly
 Various schemes and programmes introduced
 Increased Investment and Plan Allocation
 Investment increased - Rs. 1,08,531 cr (2004-08)

11
Thank You!

12

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