The Indian Textile Industry is growing at 20% and accounts for 4% of India’s Gross Domestic Product (GDP). Indian industry estimated at €35 billion with exports of €12 billion and employs 35 million people. India is the third largest producer of cotton, largest exporter of yarn (25% of world cotton yarn export). India is a major player in the home textile segment (61% of world loom capacity).
From the 1st of January 2005 all textile products and clothing have been traded internationally without quota restrictions.
Position of the Indian Textile Industry in the World Textile Economy
India contributes 20% to world spindleage capacity, the second highest spindleage in the world after China. It contributes 6% to the world rotorage and 62% to the world loomage. However in High-tech Shuttless Looms this industry’s contribution is only 4.1% to the world Shuttless loomage.
India’s Assets
India’s key assets include a large and low-cost labor force, sizable supply of fabric, sufficiency in raw material and spinning capacities. On the basis of these strengths, India will become a major outsourcing hub for foreign manufacturers and retailers, with composite mills and large integrated firms being their preferred partners.
India’s key assets include a large and low-cost labor force, sizable supply of fabric, sufficiency in raw material and spinning capacities. On the basis of these strengths, India will become a major outsourcing hub for foreign manufacturers and retailers, with composite mills and large integrated firms being their preferred partners. It will thus be essential for SMEs to align with these firms that can ensure a market for their products and new orders.
India’s Contribution
Indian Textile exports consist of:
• Cotton yarn and fabrics,
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• Man-made yarn and fabrics,
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• Wool and silk fabrics,
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• Made-ups and a variety of garments, knitwear
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• Woven and silk besides handmade
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Indian Exports
Exports from the country will touch €8.75 billion in 2007-08, up from €15 billion expected in the fiscal ended (2006-07). Major export destinations for India’s textile and apparel products are the US and EU, which together account for over 75% of demand. Exports to the US have further increased since 2005, post the termination of the Multi Fibre Agreement (MFA).
- Design oriented production – companies investing in design proposals to clients
- Major exports to European brands: Upim, Diesel, Marlboro, Rinascente, Champion, Liberti, C&A, Wallmart, JC Penny, GAP, Mark & Spencers, Sara Lee,Tomy Hilfiger, Karstadt Quell etc.
Indian Knitwear Industry
Tirupur, Tamil Nadu is the Knitwear cluster of India. This cluster is widely recognized has a `dynamic’ cluster with necessary `vertical’ depth, critical mass of enterprises as also appropriate factor conditions. This has helped it to be largely export oriented in terms of over eighty percent of its €1.3 billion a year turnover. |
