Overview Of Indian

textiles industry

Overview Of Indian textiles

industry

India is the world's second-largest producer of textiles and garments. The Indian textile industry
accounts for about 22 per cent of the world's spindle capacity and eight per cent of global rotor
capacity. It has the highest loom capacity (including hand looms) with 61 per cent of the world's market
share.

Textile plays a major role in the Indian economy. The textiles industry has made a major contribution to
the national economy in terms of direct and indirect employment generation and net foreign exchange
earnings. The sector contributes about 14 per cent to industrial production, four per cent to the gross
domestic product (GDP), and 27 per cent to the country's foreign exchange inflows. It provides direct
employment to over 45 million people.

India has overtaken Italy, Germany and Bangladesh to emerge as the world's second largest textile
exporter, as per recent data released by 'UN Comrade'. India's share in Global Textiles increased by
17.5 per cent in 2013 compared to 2012.

A strong raw material production base, a vast pool of skilled and unskilled personnel, cheap labour,
good export potential and low import content are some of the salient features of the Indian textile
industry. This is a traditional, robust, well-established industry, enjoying considerable demand in the
domestic as well as global markets. From all over the world the Retailers also increasingly come to
India attracted by low production costs. The large brands among them are Wal-Mart, Tesco, and M&S.

Textile Industry is providing one of the most basic needs of people and the holds importance;
maintaining sustained growth for improving quality of life.

The Indian textile industry is one of the largest in the world with a massive raw material and textiles
manufacturing base.

Overview Of Indian textiles

industry

Manufacturers here are ready to innovate, be flexible on quantities, have hands- on

approach to quality control and keep the integrity on dead-lines.

India's Garment Industry is a well-organized enterprise and is among the best in the
world. It constitutes of designers, manufacturers, exporters, suppliers, stockiest, and
wholesalers.

Indian Garment Industry has carved out a niche in the global markets and earned a
reputation for its durability, quality and beauty.

India is today recognized as one of the best sourcing destinations for garments,
textiles, accessories and finish. It provides a perfect blend of fashion, design, quality,
patterns, textures, colors and finish.

India Garment Industry has an advantage as it produces and exports stylish

garments for men at economical prices due to cheap labour rates. Today, the by the
way of Technological advancement and use of sophisticated machinery it has
enabled the manufacturers to achieve better quality and well designed garments.

From all over the world the Retailers also increasingly come to India attracted by low
production costs. The large brands among them are Wal-Mart, Tesco, and M&S.

Overview Of Indian textiles

industry

In 2012, apparel had a share of 69 per cent of the overall market; textiles
contributed the remaining 31 per cent.

Overview Of Indian textiles

industry

Readymade garments was the largest contributor to total textile and

apparel exports from India in FY12P; the segment had a share of 39 per
cent.

Overview Of Indian textiles industry

Segment

wise Market size and Projections Even though, at present, the menswear has a majority share
in the apparel market (43 per cent) and is growing at 9 per cent, womens wear is growing at a higher
rate of 12 per cent and is expected to reach 43 per cent share in 2020 from the current 37 per cent of
the market. Apart from this, kids wear is growing rapidly with higher growth in girls wear (11 per cent)
than boys wear (10 per cent). The report said that the home textile market is expected to grow 9 per
cent CAGR from Rs.15,570 crore in 2009 to Rs.40,000 crore by 2020.

Indias

textile and apparel industry (domestic and exports) is expected to grow from Rs.3.27 lakh crore
($70 billion) to Rs.10.32 lakh crore ($220 billion) by 2020, according to a research report by Technopak
Advisors, a leading management consultancy.

The

report said that India has the potential to increase its export share in world trade from the current
4.5 per cent to 8 per cent to reach $80 billion by 2020. The high growth of Indian exports is possible due
to increased sourcing shift from developed countries to Asia and Indias strengths as a suitable
alternative to China for global buyers.

The

Indian Textile Industry contributes 14 per cent of the total manufacturing to global brands like Nike,
Reebok, Pepe Jeans, Armani and Versace for sourcing their merchandise from the country.

The

size of Indias domestic apparel industry was around USD 36 Bn in the year 2010. The Menswear
segment comprised of USD 15 Bn, while the Womens wear was at USD 14 Bn and the Kids wear at USD
7 Bn. It has the potential to grow at a CAGR of 11% to USD 100 Bn by 2020. The domestic apparel
Industry has grown consistently over the last 10 years at a CAGR of 11%.

As

the domestic retail industry grows and matures, the manufacturing will shift to more organized and
compliant set ups.