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Overview of India's Textile Industry

The Indian textile industry is large and varied, ranging from hand-spun and hand-woven textiles to sophisticated mills. In FY19, the textile industry contributed 7% of India's industrial output, 2% of GDP, and employed over 45 million people. The domestic textiles market was worth an estimated $100 billion in FY19. The government has introduced several initiatives to support the industry such as approving a National Technical Textiles Mission and revising export incentives. Looking ahead, the industry is poised for growth due to rising domestic consumption and demand as disposable incomes increase in India.

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Adeesh Kakkar
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107 views8 pages

Overview of India's Textile Industry

The Indian textile industry is large and varied, ranging from hand-spun and hand-woven textiles to sophisticated mills. In FY19, the textile industry contributed 7% of India's industrial output, 2% of GDP, and employed over 45 million people. The domestic textiles market was worth an estimated $100 billion in FY19. The government has introduced several initiatives to support the industry such as approving a National Technical Textiles Mission and revising export incentives. Looking ahead, the industry is poised for growth due to rising domestic consumption and demand as disposable incomes increase in India.

Uploaded by

Adeesh Kakkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

Indian

Te x t i l e
Industry
Overview
Presented by:
Adeesh Kakkar
Sanjay Rajendran
Shubham Rathi
Introduction
• The industry is extremely varied, with hand-spun and hand-woven
textiles sectors at one end to sophisticated mills sector on the other
end.
• The decentralized power looms/ hosiery and knitting sector forms the
largest component in the textiles sector.
• Close linkage with the agriculture industry and ancient culture makes
it a unique.
Market Size
• In FY19 textile industry contributed:
o 7% of the industry output
o 2% to the GDP of India
o employed more than 45 million
o 15% to India’s export earnings

• It has around 4.5 crore employed workers including 35.22 lakh handloom workers.

• The domestic textiles and apparel market stood at an estimated US$ 100 billion in FY19.

• The production of raw cotton in India is estimated to have reached 36.04 million bales in FY20^.
During FY19, production of fiber in India stood at 1.44 million tonnes (MT) and reached 1.60 MT in
FY20 (till January 2020), while that for yarn, the production stood at 4,762 million kgs during same
period
Investment

• Witnessed a spurt in investment during the last five years.

• It has attracted Foreign Direct Investment (FDI) worth US$ 3.44 billion
from April 2000 to March 2020.
Government Initiatives
• On September 2, 2020, the Union Cabinet approved signing an MOU between textile committee, India
and M/s Nissenken Quality Evaluation Centre, Japan, for improving quality and testing Indian textiles and
clothing for the Japanese market.
• Under Union Budget 2020–21, a National Technical Textiles Mission is proposed for a period from 2020–
21 to 2023–24 at an estimated outlay of Rs 1,480 crore (US$ 211.76 million).
• CCEA approved mandatory packaging of food grains and sugar in jute material for the Jute Year 2019–20.
• In September 2019, textiles export witnessed a 6.2% increase post GST as compared to the period pre-
GST.
• DGFT has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two
subsectors of Textiles Industry - readymade garments and made-ups - from 2% to 4%.
• A special package of US$ 31 billion to boost export, create one crore job opportunity and attract
investment worth Rs 80,000 crore (US$ 11.93 billion) during 2018–2020. As of August 2018, it generated
additional investments worth Rs 25,345 crore (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$
854.42 million).
Achievements
• As of 2019, 348 technical textiles products were developed according
to Bureau of Indian Standards (BIS).
• I-ATUFS, a web-based claims monitoring and tracking mechanism was
launched on April 21, 2016. 381 new block level clusters were
sanctioned.
• Under the Scheme for Integrated Textile Parks (SITP), 59 textile parks
were sanctioned, out of which, 22 have been completed.
• Employment increased to 45 million in FY19 from 8.03 in FY15.
Road Ahead
• The future for the Indian textiles industry looks promising, buoyed by
strong domestic consumption as well as export demand. With
consumerism and disposable income on the rise, the retail sector has
experienced a rapid growth in the past decade with the entry of
several international players like Marks & Spencer, Guess and Next
into the Indian market.

• High economic growth has resulted in higher disposable income. This


has led to rise in demand for products creating a huge domestic
market
Thankyou!

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