Importance of Textiles & Clothing Industry in Indian

Economy

Simi Balakrishnan

CUTS International

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An Overview 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..

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… 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).

Source: Ministry of Textiles, Annual Report 2010-11

Category 2007-08 2008-09 2009-10

Cotton Textiles 6858.63 4803.52 5711.41

Manmade Textiles

3177.11 3325.88 3970.88

Silk 657.72 684.93 596.05

Wool 443.11 484.75 470.20

Ready Made Garments

9069.80 10383.26 10064.73

Handicrafts 1452.28 1090.77 961.67

Jute 327.86 303.21 218.40

Coir & Coir Prod.

160.25 150.02 160.60

Total 22146.78 21226.34 22418.79 5

T&C Exports from India - Top ten countries

Country % Share [2008-09]

USA 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 6

Source: Federation of Indian Chambers of Commerce and Industry

EU-27 Textile Imports

Country Growth % Share %2009

Share %2008

China -12.9 29.2 29.8

India -15.6 10.6 11.2

Turkey -15.3 16.7 17.5

Pakistan -9.7 7.8 7.7

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Domestic Demand Drivers

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

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.

Source: Confederation of Indian Textile Industry

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Promotion of Textiles Sector in India

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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