Transcript Importance of Textiles & Clothing Industry in Indian Economy

Importance of Textiles &
Clothing Industry in Indian
Economy
Simi Balakrishnan
CUTS International
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An Overview
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Indian textiles and clothing (T&C) industry is extremely
varied
Industry contributes about…
 14% to industrial production
 4% to GDP
 17 % to country's export earnings
Largest provider of employment after agriculture
Direct employment to over 35 mn people
50 mn engaged in allied activities
Self reliant in the entire value chain – fibre to fashion
Supports agriculture in over 9.5 million hectares of land where
cotton is cultivated.
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India has..
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Highest number of looms (1.8 mn shuttle looms;
200,000 shuttle-less looms; 3.9 mn handlooms)
2nd largest number of spindles in world (40 mn
spindles)
1st in Jute production (1,900 mn kg)
2nd in silk production (15 mn kg raw silk)
2nd in cotton production (2,700 mn kg cotton fibre)
2nd in cotton exports (2,000 mn kg)
5th in man-made fibers production (2,000 mn kg)
8th in production of wool (51 mn kg)
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India’s T&C Industry…
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Generated US$ 55 bn in 2008-09 (Domestic market- 33.4
bn; exports- 21.6 bn)
Envisages to reach US$ 100 bn by 2015 (Domestic
market- 57 bn; exports- 43 bn
Contributed 12.5% to India’s total export in 2009-10
Holds 4% of global T&C exports
Largest foreign exchange earning sector
Registered strong growth in post quota period –
 US$ 14.03 bn in 2004-05 to US$ 22.15 bn in 2007-08
 but declined in 2008-09 to US$ 20.94 bn
 and increased in 2009-10 to US$ 22.42 bn
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Segment-wise Exports 2007-2010 (US$ mn)
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Source: Ministry of Textiles, Annual Report 2010-11
Category
Cotton Textiles
Manmade
Textiles
Silk
Wool
Ready Made
Garments
Handicrafts
Jute
Coir & Coir
Prod.
Total
2007-08
6858.63
3177.11
2008-09
4803.52
3325.88
2009-10
5711.41
3970.88
657.72
443.11
9069.80
684.93
484.75
10383.26
596.05
470.20
10064.73
1452.28
327.86
160.25
1090.77
303.21
150.02
961.67
218.40
160.60
22146.78
21226.34
22418.79
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T&C Exports from India - Top ten countries
Country
USA
% Share [2008-09]
20.38
UAE
8.27
UK
7.53
Germany
6.11
France
3.80
Italy
3.76
China
2.54
Spain
2.76
Bangladesh
2.45
Netherlands
2.44
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EU-27 Textile Imports
Country
Growth %
-12.9
Share %
2009
29.2
Share %
2008
29.8
China
India
-15.6
10.6
11.2
Turkey
-15.3
16.7
17.5
Pakistan
-9.7
7.8
7.7
Source: Federation of Indian Chambers of Commerce and Industry
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Domestic Demand Drivers
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More than 60% of T&C production for domestic
market
Buoyant domestic economy
Helpful demographic profile and increase in working
female population
Organized retailing a driver for increased
consumption.
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International Demand Drivers
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Dismantling of quotas
Increase in sourcing of textiles by developed markets
from developing countries.
Apparel spending remains significant in life style
products category in developed world.
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Projected Market for Indian T&C – 2015
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Source: Confederation of Indian Textile Industry
Total T&C market US$ 100 bn
Exports Market US$ 43
bn (43%)
Textile
Export
US$ 22 bn
Apparel
Exports
US$ 21 bn
Domestic Market US$ 57 bn
(57%)
Domestic
Textile
Market
US$ 28 bn
Domestic
Apparel
Market
US$ 29 bn
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Promotion of Textiles Sector in India
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Sector is modernizing rapidly
Various schemes and programmes introduced
Increased Investment and Plan Allocation
Investment increased - Rs. 1,08,531 cr (2004-08)
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Thank You!
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