It is believed that the Indian sector of textiles is among the most important industries of textiles around the globe. Although it was in an unorganized sector just a just a few years ago but the situation has changed drastically following the liberalization of India. Indian economy. Liberalization provided the needed boost to the industry of textiles, which has since grown to become one of the biggest worldwide.
According to the most recent data available in the Annual Report 2009-10 of the Ministry of Textiles, “The Indian textile industry contributes approximately 14 percent in industrial output, four percent in the gross national output (GDP) as well as 17 percent to the export earnings of the country.” In addition, it provides direct employment to more than 35 million people. It is the second-largest source of jobs, second only to agriculture.
The report adds “The current market for domestic textiles in India is predicted to grow by up to US 60 billion in 2012, compared to the present US$34.6 billion.” 34.6 billion. Exports are also projected to rise from 4 to 7% by 2012.” Textile Accessories are also a significant segment of this.
The biggest strength of India is in its huge talent and cheap workforce. But, aside from that there are other aspects that contribute to its strength such as
The western countries are creating manufacturing facilities in India that open the door to a myriad of opportunities for all participants in the industry of textiles.
Experts think that the golden age of Chinese exports of textiles and apparel is over , and the manufacturing base of the global textile industry is slowly shifting away from China in to India, Pakistan and other low-cost destinations.
Although experts say that China has passed its golden days, one can’t afford to treat China lightly. It is important to keep in mind the capacity of Chinese exporters to offer high-quality goods at a low cost. Indian exporters of textiles cannot afford to settle and should remain alert for any developments within the international trade world. India is an agricultural country and have biggest textile sector with many good shops of garments like House of Mae which are available with all varieties all the time.
The global textile industry has seen the exponential growth of 25 percent) in the last 10 years. Asian market will be the main driver of the development of the industry of textiles in the years ahead and the sector of textiles may grow beyond the current threshold of $500 billion in the near future.
In the Indian manufacturing of clothing is among of the major industries in the Indian economy. It not only contributes for the growth of the Gross domestic product (GDP) and is also a source of employment for many people. In the past, the industry has experienced a tremendous growth rate and has been able to attract significant amounts of investment from foreign countries (FDI). The business is incredibly diverse and plays a crucial part in creating revenue for the country’s economy.
In recognition of the significance of this sector, Government of India (GoI) has a specific ministry called the Ministry Of Textiles – which is charged with developing and implementing policies that support the development of this sector. Through the years the ministry has created numerous policies and programs that have fueled growth in the industry of textiles.
Exports from this industry have seen a huge increase following the removal of quotas in the Multi-Fibre Agreement (MFA) were eliminated. According to a whitepaper by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the research firm Technopark the size of India’s apparel and textile industry is projected to increase at a rate of 9.5 percent, which will increase to USD$223 billion by 2021 from USD$89 billion the year 2011. That’s quite massive.
India’s exports of apparel and textiles have grown by an average of 10 percent since 2005. The textiles produced in India are exported to over 100 countries, with those from the US and EU making up more than two-thirds the exports. Other major markets include China, Bangladesh, Brazil, Saudi Arabia, Canada, Sri Lanka, Egypt, Pakistan and Hong Kong.
The outlook for the future is positive for the sector. Since the liberalization process, India has attracted buyers from around the world. There is huge interest from established players across the globe to venture into the Indian industry of clothing and textiles. The country has seen majors such as Marks and Spencer, Little Label, Castle etc opening their liaison offices. Retailers from all over the world are always looking to improve their sources from Indian markets. This has increased demand dramatically and Indian producers are working towards expanding their capacities. This bodes well for the industry.
India is also making progress in the direction of an agreement called the “India-EU Broad-based Trade and Investment Association (BTIA)” which, when it is completed, will provide new opportunities for the sector of textiles within EU countries. This could further accelerate the development of the industry. Handlooms are the most vulnerable of those working in the industry of textiles. The GoI’s decision to provide an entire
The package of Rs. 3,884 crore to ease loan repayments of individual handloom cooperatives and individual weaver will not only revitalize the handloom industry but will also accelerate the overall expansion of the textile industry in India.
The decision of the Government to prolong the Technology Upgradation Fund Scheme (TUFS) in the 12th Five-Year Plan an excellent news for the textile industry. TUFS is a plan to improve the technological capabilities of the textile industry. Since it was first introduced at the beginning of 1999, the program has attracted investments worth over Rs 2.53 millions. In today’s world it is vital to stay ahead of the curve in technological advancement to remain competitive in the marketplace. But, there are some issues – like the cost of labor and manufacturing competitiveness that need to be addressed. In the end, the future for this industry is promising and is expected that over the next few years, the industry will play a greater role in the development of the economy.