Indian Textile & Clothing Industry

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An Overview of Indian Textile & Clothing Industry


Content Fragmentation of Indian Textile & Clothing (T&C) Industry Major Facts about Indian T&C Industry T&C Exports from India Growing Market Size of Indian T&C Industry SWOT Analysis Government Initiatives to Promote T&C Industry


Fragmentation Of Indian Textile & Clothing Industry Indian T&C Industry

RMG

Organised Sector

Cotton Mills (Private, Public & Cooperatives)

Spinning Mills

Man-Made Fiber

Cotton

Composite Mills

Unorganised Sector

Handloom

Powerloom

Silk

Woolen

Jute


Major Facts about Indian T&C Industry

Contributes 14% to total industrial production in India

Contributes 4% to India’s GDP

Accounts 13% of India’s export earnings


Major Facts about Indian T&C Industry

Accounts for 14% of world’s total production of textile fibres and yarns

Employs 45 million people directly and 60 million people indirectly

Holds 63% of world market share in loom, majorly handloom


Major Facts about Indian T&C Industry


Growing Market Size of Indian T&C Industry  As of March 2017, Indian T&C industry was estimated at US $ 108 billion approx.

and it is expected to reach US $ 223 billion by 2021.

 Backed by strong domestic and international demand and being the second-

largest exporter of textiles, Indian T&C industry has the potential to reach up to a size of US $ 500 billion.

 According to Khadi and Village Industries Commission (KVIC), Indian Khadi product

sales alone are expected to exceed Rs. 5,000 crores (US $ 776.33 million) – the sales target of 2018-19.


Growing Market Size of Indian T&C Industry India's Textile & Clothing Industry Market Size (in US $ billion) 250 200 150 100 50 0

2006

2011

2016

2021*

* Expected Market Size


Growing Market Size of Indian T&C Industry 250 200

Domestic Textile and Clothing Industry Size (in US $ billion)

150

CAGR (12.84%) Textile and Clothing Exports from India (In US $ billion)

100

CAGR ( 12.06%)

50 0

2015

2016

2021* * Expected Market Size


India’s Textile & Clothing Exports Percentage-wise Share of Commodities in T&C Exports 6.00%

 The T&C industry contributes

15% to total exports from the country.

Readymade Garment 13.00%

Fibre Yarn 48.00%

12.00%

Fabric Madeup

14.00%

Other Textile Products 7.00%

 The T&C export target for FY

2017-18 was set at US $ 45 billion. It is expected to reach US $ 82 billion by 2021.


Market Share of Major Textile & Clothing Exporters in Global Textile Industry 15.23%

31.35% 1.46% 2.25%

4.88%

West European countries China India Pakistan

4.00%

Japan Turkey

3.71%

1.17%

2.83%

Korea USA Arab Countries

4.00%

Indonesia Others


SWOT Analysis of Indian T&C Industry


SWOT Analysis of Indian T&C Industry


SWOT Analysis of Indian T&C Industry


SWOT Analysis of Indian T&C Industry


Initiatives Taken by Government to Promote Indian T&C Industry  100% FDI has been allowed in textile sector via automatic route.  Upgradation of labour’s skill-set through allocation of funds and implementation of National Skill Development Programme

in the T&C sector.

 To improve the status of power loom weavers, a mega package has been planned that includes social welfare schemes,

insurance cover, cluster development and upgradation of obsolete looms along with tax benefits and marketing support.

 To promote high-quality handloom products, the government has started promoting the “India Handloom” initiative on

social media to connect with young customers.

 An MoU has been signed between CMAI (The Clothing Manufacturers’ Association of India) and CCCT (China Chamber of

Commerce for Import and Export of Textile) to increase T&C exports from India.

 Effective implementation of sector-related policies, substantial financial support from government and creation of

investment opportunities will help this industry contribute significantly to the “Make in India” initiative.


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