Indian Textiles and Apparel is a USD 100 billion plus industry providing direct employment to over 45 million people and accounts for 14% of India’s Industrial production. In terms of capacity, the industry has second largest vertically integrated textiles production base in the world after China. Given the oft repeated positives of the demographic dividend like the emerging tendency to spend more on life style products and the spread of organised retailing and e-retailing to smaller towns and even rural areas, the demand for textile products in the domestic market is expected to grow substantially in the coming years and also in the long run.
Among the textile industry value chain, comprising spinning, weaving, processing and garmenting, the spinning and Apparel sectors attained considerable strength in recent years, but the weaving and processing sectors are yet to attain competitive efficiency.
With a 12% CAGR in domestic sales, the textile and apparel industry should reach a production level of USD 250 billion by 2022-25 from the current level of about USD 100 billion for the domestic market. Similarly with a 15% CAGR in exports, India would be exporting about USD 185 billion of textile and apparel by 2024-25.Considering the targeted growth in exports, India should be able to double the share of the global textile and apparel trade from the present level of 5%. India can achieve higher growth rates of finished products like apparel, homes furnishing, and technical textiles. This would maximise employment generation and value creation within the country and the fulfilment of the Prime Minister’s Vision of “Make of India”. In the process, investment of about USD 180 billion to USD 150 billion would take place and about 25 million additional jobs would get created.
Currently Indian apparel and home textiles rated as one of the key suppliers to all leading buying houses across the world. India, with its fairly high level of compliant statutes in all garment export factories, has become an attractive sourcing destination and apparel exports. The strength of the Industry lies in is its production base with the wide range of fibre/yarns from cotton, Jute, Silk, Wool, Synthetic/ MMF products like Polyester, Viscos, nylon and Acrylic. The market size is currently estimated at around USD 116 billion, and is expected to reach USD 141 billion by 2020. The domestic consumption of textiles and garments is valued as USD 65 billion in 2014. The garment retail has the highest share of 73% contributing USD 47 billion, technical textiles USD 14 billion and Home textiles contribute USD 4 billion. The overall cloth production in India is expected to grow to 112 billion sq. Meters by FY2017 from 63.5 billion Sq. meters in FY2014. Textile Exports grew by 11.7% to USD 35.4 billion in FY 2014. The CAGR growth of textile exports was 9.13 percent over the period of FY 2007 to FY 2014. Technical Textiles industry is expected to expand at a CAGR of 9.6% during FY 2014 -2023 to USD 32 billion in FY 2023.
The increasing population with growing purchasing capacity is the major driver. Urban population accounts for 32% of the total population of India. Rising female workforce will increase the consumption of textile items, the increased investment in rural India has a direct impact on consumption growth.
Indian Textiles and Apparel is a USD 100 billion plus industry providing direct employment to over 45 million people and accounts for 14% of India’s Industrial production. In terms of capacity, the industry has second largest vertically integrated textiles production base in the world after China. Given the oft repeated positives of the demographic dividend like the emerging tendency to spend more on life style products and the spread of organised retailing and e-retailing to smaller towns and even rural areas, the demand for textile products in the domestic market is expected to ...