Textile Industry Profile

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  • Topic: Textile, Textile manufacturing, Textile industry
  • Pages : 10 (2484 words )
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  • Published : November 27, 2010
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Indian Textile Industry
Indian textile industry contributes about 14% to industrial production, 4% to the country's gross domestic product (GDP) and 16.63% to export earnings. Nearly 40% of the textiles produced in the country is exported and the textiles sector is the biggest employment generator after agriculture. The sector is expected to generate 12 million new jobs by 2010. The sector targets US$ 6 billion foreign direct investment (FDI) by 2015 to be invested in green field units in textiles machinery, fabric and garment manufacturing, as well as technical textiles. India has made inroads into the markets of its key competitors which include Asian countries such as Sri Lanka, Bangladesh, Vietnam and Cambodia. The Indian textile and apparel industry is taking a new course by entering the Chinese market. Most of the top global apparel retailers, such as JC Penny, Nautica, Docker and Target, have their sourcing network in India. Indian textiles and apparel exports, which is worth US$ 22 billion, is expected to register a four-fold increase to touch US$ 90 to 100 billion in the next 25 years. Government Initiatives

Government has taken the following initiatives to uplift the Textile Segment: 1. The Government has announced the release of a subsidy of US$ 533.87 million for the textile industry under the Technology Up-gradation Fund scheme (TUFs). 2. The government extends 10% capital subsidy and 5% interest subsidy on installation of machineries and for processing machinery under the TUFS. 3. A 41-member Working Group has also been announced to be set up with a National Fiber Policy, to ensure self-sufficiency in fiber consumption and export requirements in India. 4. The Textiles Committee has also been reconstituted in order to ensure standard quality of textiles both for internal marketing as well as exports. The committee will also establish laboratories and test houses for testing of textiles. 5. In addition, an online marketing and sales portal has also been launched by the textile minister. The e-marketing platform, developed by the Central Cottage Industries Corporation of India and the Handicraft and Handlooms Export Corporation of India, will host more than 1,000 wide ranging handicrafts and handlooms products. It will also provide online services, such as e-payment facility through major debit/credit card as well as online tracking of the shipment. 6. Moreover, the Ministry of Textiles is considering setting up textile parks at Vidarbha and Marathwada, the largest cotton growing regions in Maharashtra. Currently seven textile parks are already in various stages of completion in Maharashtra.

Technical Textile Segment
Technical textiles segment is expected to employ over 300,000 additional workers increasing the total employment in the sector to 1.2 million by the year 2012. The Government has set up four Centres of Excellence (CoEs) for Meditech, Agrotech, Geotech and Protech group of technical textile, providing one-stop facilities for testing, human resource development and research and development. Advantage India

India offers cheaper production and marketing costs and enormous opportunities that have tempted Taiwanese companies to work on joint ventures with Indian companies, especially for the manufacture of manmade fabrics. Several European textile and textile machinery manufacturing companies have shown interest in sourcing garments from India. Textile companies were keen to set up base in India due to the cheap labour available here. India offers various incentives like low-cost labour and intellectual right protection to foreign investors. The country allows 100% FDI in the textiles sector. Investments

According to the Minister for Textiles, Mr Dayanidhi Maran, around US$ 5.14 billion of foreign investment is expected to be made in India in the textile sector over the next five years. Indian...
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