India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries.
India is among the world’s largest producers of Textiles and Apparel. India has the second highest produce of Cotton and Jute in the world.
45 Million People are currently employed in this industry and there is potential for the same to grow at an average of 25% in the next 2 years. Indian textile Industry aspires to employ over 55 Million by the year 2021.
The Indian labour has the Nuances and Technology to produce high quality of garments suiting the international standards. India has rich design patterns and have evolved this for centuries.
Multiple hubs have been created in Indian subcontinent across Towns, villages and 2-tier cities for manufacturing quality textiles and Apparels. Since this industry is capital intensive the labour supply chain and the manufacturing supply chain of in India for Textile and garment industry is complementing and has high performance standards.
India’s textile and apparel exports stood at US$ 38.70 billion in FY19 and is expected to increase to US$ 82.00 billion by 2021 from US$ 22.95 billion in FY20 (up to November 2019). (Courtesy IBEF)
The domestic textiles and apparel industry contributes 2.3% to India’s GDP and accounts for 13% of industrial production, and 12% of the country’s export earnings.
The textiles and apparel industry in India is the second-largest employer in the country providing employment to 45 million people. It was expected that this number will increase to 55 million by 2020. But due to the Lockdown due to Covid -19 in India there is less traction and limited growth for the 1st Quarter of the financial year 2020 – 21.
India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 bn by 2025, up from $52.7 bn in 2019. There is a never-ending global demand and the same has be catered by Indian Apparel manufacturing industry. The speed at which the growth of this specific segment has happened is an phenomenon by itself.
This sector is the second largest employer in the country after agriculture. Under Union Budget 2020-21, a National Technical Textiles Mission is proposed for a period from 2020-21 to 2023-24 at an estimated outlay of Rs 1,480 crore (US$ 211.76 million). In 2020, New Textiles Policy 2020 is expected to be released by the Ministry of Textiles. The Government of India announced a Special Package to boost exports by US$ 31 billion, create one crore job opportunity and attract investments 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).
The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development scheme named ‘Scheme for Capacity Building in Textile Sector (SCBTS)’ with an outlay of Rs 1,300 crore (US$ 202.9 million) from 2017-18 to 2019-20. As of August 2019, 16 states have signed pacts with the Ministry of Textiles to partner with it for skilling about four lakh workers under the scheme.
Cotton production in India reached 33.7 million bales in FY19*. During FY19, production of fibre 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.
India is the world’s second largest exporter of textiles and clothing. Increased penetration of organised retail, favorable demographics, and rising income level are likely to drive demand for textiles. Cloth production stood at 63.34 billion square meters in FY20 (till January 2020).
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