Textile Industry in India
India is the second largest producer of textiles in the world. This industry accounts for almost 24% of the world’s spindle capacity and 8% of global rotor capacity. Abundant availability of raw materials such as cotton, wool, silk, and jute as well as skilled workforce have made the country a sourcing hub
The Indian textile industry has strengths across the entire value chain from natural to man-made fibre to apparel to home furnishings. Its share in the nation’s GDP is 6% and in exports, 13%. The sector is the second-largest employer after agriculture.
The dynamics of the market economy have thrown up both opportunities and challenges to our domestic industry. The Indian textile industry should gear up to attain its desired position in the global market. The Government is willing to provide all possible support by creating enabling frameworks. Considering the targeted growth in exports, India should be able to double its share of the global textile and apparel trade from the present level of 5%. India can achieve higher growth rates of finished products such as apparel, home furnishing, and technical textiles. This would maximize employment generation and value creation within the country and realize the Prime Minister’s vision of ‘Make in India’. Achieving the ambitious vision of exports of $ 300 billion and 20% share of global trade by 2024-25 is not going to be easy, and is unlikely with a business-as-usual approach.
Important Factors Favoring Growth of the Indian Textile Industry:
- Raw material base: India has high self- sufficiency for raw material particularly natural fibers. India’s cotton crop is the third largest in the world. Indian textile Industry produces and handles all types of fibers.
- Labour: Cheap labor and strong entrepreneurial skills have always been the backbone of the Indian.textile Industry.
- Flexibility: The small size of manufacturing which is predominant in the apparel industry allows for greater flexibility to service smaller and specialized orders.
- Rich Heritage: The cultural diversity and rich heritage of the country offer good inspiration base for designers.
- Domestic market: Natural demand drivers including rising income levels, increasing urbanization and growth of the purchasing population drive domestic demand
Future of Textile Industry
Further, India has to work towards eliminating trade barriers and needs to take measures to expand market access. For instance, the biggest challenge that the apparel industry is facing today is the cost disadvantage across major markets. India’s competing countries have zero duty access in these markets.
Conclusion
Looking at the macroeconomic factors and emerging trends, we believe that the real growth phase of the industry is about to start. The Indian textile industry is at present is one of the largest and most important sectors in the economy in terms of output foreign exchange earnings and employment in India. The Textile industry has the enriched potential to scale new height in the globalized economy.
The textile industry in India has gone through significant charges in anticipation of increased international competition.
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