- Rising per capita income, favorable demographics and a shift in preference to branded products to boost demand.
- The domestic textile industry in India is projected to reach USD 250 billion by 2019 from USD 150 billion in July 2017.
- Favourable trade policies and superior quality to drive textile exports.
- Textile and apparel exports from India is expected to increase to USD 82 billion by 2021 from USD 37.85 million in 2018.
- Increase in domestic demand set to boost cloth production
- Total cloth production in India in FY 17 was 63.6 billion square
- Cloth production between April 2017-Februay 2018 stood at 61.95 billion square metres (provisional).
- The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry – Readymade garments and Made ups – from 2 percent to 4 percent.
- Huge investments are being made by Government under Scheme for Integrated Textile Parks (SITP)-(USD 184.98 million) and Technology Upgradation Fund Scheme (TUFS)-(USD 216.25 million released in 2017) to encourage more private equity and to train the workforce.
- Abundant availability of raw materials such as cotton, wool, silk, and jute.
- India enjoys a comparative advantage in terms of skilled manpower and in the cost of production relative to major textile producers.
- Free trade with ASEAN countries and proposed agreement with European Union will boost exports.
- The fundamental strength of the textile industry in India is its strong production base of a wide range of fiber/yarns from natural fibers like cotton, jute, silk, and wool to synthetic/man-made fibers like polyester, viscose, nylon, and acrylic.
- India’s textiles industry contributes 10 percent to the manufacturing production of India.
- It contributes 2 percent to the GDP of India and employs more than 45 million people.
- The sector contributes 13 percent to the export earnings of India.
- With production of 6,106 million kg, India was the largest producer of cotton in 2016-17.
- India is the 2nd largest producer of Manmade Fibre and Filament, globally, with the production of around 2,11 million kg in 2016-17
- Exports of textiles from India reached USD 32.75 billion during April – February 2018.
- The Goods and Services Tax that rolled out in July 2017 is expected to make imported garments cheaper by 5-6 percent, as the GST regime will levy 5 percent tax for both domestic textile manufacturers and importers.
- India took the top spot in market share in the men/ boys knitwear shirts cotton’ category with respect to garment exports to the US between January-June 2017.
Cotton textiles dominate exports
- The domestic textile and apparel have been one of the largest contributors to India’s exports.
- During the 2017-18, export of textiles has reached 21.15 billion.
- Man Made garments had a share of 25.60 percent in exports and
- reached USD 5,413 million.
Key Textiles & Apparel Zones in India