Indian Textiles Market will be worth by 2020, currently it contributes 2% to India’s GDP.
Perhaps the oldest industrial sector in India. Textiles and garments sector has been the jewel of the Indian economies crown since time immemorial In fact this sector dates back to a few centuries and due to this India is a market leader of sorts in this sector.
Indian textile sector is export centric and accounts for close to 13% of total exports. It also happens to be one of the biggest industrial employer in the country also. The textile industry has two broad segments. First, the unorganised sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. The second is the organised sector consisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale.
The Indian textile industry is a phenomenon in itself. The reason we say this is that it is still very varied in its working formats. We still have traditional hand woven mechanisms, and we also have the ultramodern cloth mills. Just because of its presence for centuries in the country it has also promoted huge production of raw materials for its needs. We all know that to make cloth you need cotton. Hence it promotes growth of agriculture in a big way. Due to this industry cotton production is seen as a profitable agriculture venture. Hence giving livelihood to millions of farmers across the nation.
The Indian textiles industry, currently estimated at around US$ 150 billion, is expected to reach US$ 230 billion by 2020. The Indian Textile Industry contributes approximately 2 per cent to India’s Gross Domestic Product (GDP), 10 percent of manufacturing production and 14 per cent to overall Index of Industrial Production (IIP).
The production of cotton in India is estimated to increase by 9.3 per cent year-on-year to reach 37.7 million bales in FY 2017-18. The total area under cultivation of cotton in India is expected to increase by 7 per cent to 11.3 million hectares in 2017-18, on account of expectations of better returns from rising prices and improved crop yields during the year 2016-17.
Indian exports of locally made retail and lifestyle products grew at a compound annual growth rate (CAGR) of 10 percent from 2013 to 2016, mainly led by bedding bath and home decor products and textiles.
The future of Indian Textiles and garment sector is very bright. Most of the international markets are depended upon the Indian goods for their needs. Being centuries old we also have one of the best learning curve in this sector. Perhaps the only sector in India where the traditional as well as modern skills are still selling like a hot cake. This sector is also witnessing huge investments and the government schemes are also very supportive for the industry. Government of India passed the National Textile Policy in 2000. The major functions of the ministry of textiles are formulating policy and coordination of man-made fiber, cotton, jute, silk, wool industries, decentralization of power loom sector, promotion of exports, planning & economic analysis, finance and promoting use of information technology. The advisory boards for the ministry include All India Handlooms Board, All India Handicrafts Board, All India Power looms Board, Advisory Committee under Handlooms Reservation of Articles for Production and Coordination Council of Textiles Research Association. There are several public sector units and textile research associations across the country.