Indian Textiles Industry has a major presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the country. It contributes 14% to industrial production, 4% to India’s GDP and constitutes 13% of the country’s export earnings. The textile sector is one of the largest providers of employment alongwith agriculture. The domestic textile and apparel industry in India is estimated to reach $100 Billion by 2016-17, while Exports in textiles and apparel from India are expected to increase to $65 Billion by 2016-17.
The Indian textiles industry represents a widely diverse spectrum of activities with the hand-spun and handwoven sector at one end, and the capital intensive sophisticated mill sector at the other. The decentralized power looms, hosiery and knitting sectors form the largest section of the Textiles Industry. The close linkage of the Industry to agriculture and the ancient culture, and 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.
Industry performance
The Indian textile industry has the potential to grow five-fold over the next ten years to touch $500 billion mark on the back of growing demand for polyester fabric. The $500 billion market figure consists of domestic sales of $315 billion and exports of $185 billion. The current industry size comprises domestic market of $68 billion and exports of $40 billion. The total fabric production in India is expected to grow to 112 Billion square metres by 2016-17, while India’s fibre production is expected to reach 10 Million Tonnes in 2016-17.
Export
India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of its exports worldwide. The report of the Working Group constituted by the Planning Commission on boosting India’s manufacturing exports during 12th Five Year Plan (2012-17) envisages India’s exports of Textiles and Clothing at $64.41 billion by the end of March, 2017. Export of textile products for FY15 increased marginally by 0.46% to $37,137.32 million as compared to $36,967.56 million in FY14.
Import
India is major exporting country as far as textile sector is concerned and not dependent on import. Majority of import takes place for re-export or special requirement. The import of textile product increased 13.98% in FY15 to $5,511.95 million as compared to $4,835.93 million in FY14. The textile ministry is in consultation with the finance and revenue departments to examine the possibility of a duty cut on man-made fibre as high cost of the key raw material for making blended garments is making Indian goods uncompetitive in the global market. While man-made fibre draws an excise duty of 12.5 per cent, it has various import restrictions, leading to a cumulative duty of 29 per cent. Viscose fibre, one of the most common man-made fibres, attracts an anti-dumping duty.
Investment in the industry
The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investment (FDI) worth $70.82 million or Rs 444.43 crore during April 2015.
Recent developments
Govt launches scheme to promote geo-technical textiles in North East
Minister of State for Textiles has launched a scheme to promote usage of Geotechnical Textiles in the North Eastern Region of India, at Imphal. The scheme has several objectives including; demonstrative use of geotechnical textiles as a modern cost-effective technology in the development of infrastructure in fragile geological conditions of NER; improving the durability, function and life of infrastructure in NER, while bringing down the life cycle cost of the projects; promoting the use of geotechnical textile materials and create a market for these products in NER by inducing demand in infrastructure development and stimulating investment and development of technical textile industry in NER and rest of the country. In addition, the scheme intends to also develop a set of standards and specifications for the products as well as projects using these materials. The scheme will also develop literature/manuals for inspection and testing and other aspects of construction using these materials.
Govt launches handicrafts & carpet sector skill council
The government has launched a new institution, Handicrafts & Carpet Sector Skill Council. The institution will promote skill development among artisans, craft persons and workers at grassroots level. This would enable them to adopt latest techniques and become more productive. The institution will promote skill development among artisans, craft persons and workers of handicrafts and carpet products, at grassroots level. This would enable them to adopt latest techniques and become more productive. The Council will be responsible for developing occupational standards; setting up labour market infrastructure; introducing certification & assessment mechanism and providing guidance to the artisans, crafts persons and workers in all aspects of skill development. The Council will operate from New Delhi.
Textiles MoU between India and Kyrgyzstan
Cooperation in the textiles sector between India and the Central Asian Republic of Kyrgyzstan is set to receive a boost. A Memorandum of Understanding (MoU) has been signed between India and Kyrgyzstan. The MoU seeks to strengthen bilateral cooperation in the following three fields including; Textiles and Clothing, Silk and Sericulture and Fashion. The two countries have agreed to set up a Joint Working Group (JWG) to explore details of cooperation within the scope of the MoU and the steps required to facilitate bilateral trade and investment. The JWG will be co- chaired by an official of appropriate level from the Ministry of Energy and Industry of the Kyrgyz Republic and the Ministry of Textiles of the Republic of India.
Corporate developments in textile sector:
Textile manufacturer Sangam has made foray into branded women apparel category with a launch of a new brand Channel Nine. The company is in the process of achieving manufacturing volumes of 3.6 million units per annum. It intends to make inroads into the domestic lingerie retail market estimated to be around Rs 15,000 crore now and growing at a Compounded Annual Growth Rate (CAGR) of 20-25 percent.
Snapdeal has partnered with India Post to jointly work on bringing thousands of weavers and artisans from Varanasi through its website. “This is an endeavour by Snapdeal and India Post to empower local artisans, small and medium entrepreneurs to sustain their livelihood by providing a platform to popularise their indigenous products.
Reliance Industries (RIL) plans to enter into a joint venture (JV) with China-based Shandong Ruyi Science and Technology Group Co. The JV will leverage RIL's existing textile business and distribution network in India and Ruyi's state-of-the-art technology and its global reach.
Raymond has launched ‘Regio Italia’, a luxurious, elite and finest Italian fabric for its customers. Regio Italia is a fine collection of fabrics from Italy with the latest designs that is carefully woven and specially handpicked assortment of the best designs in formal and occasion menswear suiting fabrics.
Welspun India (WIL), part of the Welspun Group has unveiled its new spinning facility at Anjar, Gujarat - the largest under one roof in India. The expansion project reflects the ethos of the Government of Gujarat’s recent ‘Farm-Factory-Fabric-Fashion-Foreign’ Textile Policy, which is aimed at strengthening the entire textile value-chain.
Outlook
For mid term outlook, the Indian textile industry is expected to grow strongly, with growth being balanced from both domestic consumption as well as exports demand. In the near-term, domestic demand is expected to grow strongly with the revival of the overall economy and improvement in purchasing power of Indian consumers. On the exports front, opportunities are from weak currency and decreasing cost competitiveness of China that are likely to give positive impetus to the Indian exports, while factors like structural impediments to industrial growth, volatile foreign exchange rates and increase in cotton and yarn prices are likely to negatively affect growth and profitability for the textile exports.
The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income are on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players.
Source:- livemint.com
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