Textile industry of our country is one of the oldest industries. This sector is one of the largest contributors to exports. It contributes around 11 per cent of total exports. The export earning was 41 billion dollar in 2015-16 with average annual growth rate of 5.4 per cent. This industry operates from cottage, handloom, and other unorganized sectors to the adoption of modern high technology. It is a labor intensive sector and one of the major employers of the country. Directly and indirectly, this sector employs 40 million and 60 million workers respectively. Handloom, handicrafts and sericulture operate on a small scale through traditional tools and orthodox methods. The organized sector consists of spinning, apparels and garments segments, which apply modern capital intensive technologies. These industries have very close linkage with agriculture for supply of raw material like cotton, jute, silk,, wool, hemps etc. The textile industry has the capacity to produce a wide variety of products suitable for different market segments, both within India and across the world.
Business potential in textile sector
Current estimates of the country’s textiles industry is around 108 billion US dollars. It is expected to touch 223 billion US Dollar by 2021. The industry is the second largest employer after agriculture. It provides job to over 10 crore people directly and indirectly. Current domestic sale of textile is 68 billion US dollars with expected projection of 315 billion US Dollars. Present export is 41 billion US dollars with a realistic projection of 185 billion US dollars. Over all, the industry has a potential of 500 billion US dollars.
The Indian textile industry has strength across the entire value chain from natural to man-made fiber to apparel to home furnishings. Our global export growth is only 5% per cent where as countries like China, Vietnam and Bangladesh have global export growth rate of 39 per cent,30 per cent and 18 per cent respectively. Taking innovative measures in partnership with the industry and learning from experience, India could aspire to achieve 20 per cent growth in exports over the next decade. In the domestic market, sustaining an annual growth rate of 12 per cent should also not be difficult. This implies that with a 12 per cent CAGR in domestic sales the industry should reach a production level of US$ 350 billion by 2024-25.With a 20 per cent CAGR in exports India would be exporting about US$ 300 billion of textile and apparel by 2024-25.Considering the targeted growth in exports, India should by then have a market share of 15 per cent to 20 per cent of the global textile and apparel trade from the present level of 5%.During this period India should also attempt a structural transformation there by it will be a leading exporter of finished products. This would maximize employment generation and value creation within the country and the fulfillment of the Prime Minister’s Vision of Make of India.