Indian Textile Industry vision 2020

Topics: Textile, Per capita income, Cotton Pages: 5 (956 words) Published: June 4, 2014

INDIAN TEXTILES - VISION 2020
Just 12 years after the arrival of the 6 billionth individual on the planet in 1999, humanity will greet the 7 billionth arrivals this month. The world population continues its rapid ascent, with roughly 75 million more births than deaths each year. The consequences of a world crowded with 7 billion people are enormous. 57% of the population lives in South East Asia, where 18.6% in India. Obviously, the requirement of Apparel and Technical textile will increase enormously. Furthermore, china’s transformation has become obvious from Textile to macro-engineering product line, due to acute shortage of labour, (23% of population will be more than 65 years of age within coming 5- yrs.) and high wages of around USD450/month in compare to india’s USD180.00 per month. However, the consumption of textile (in USD) has to rise by 75%, as expected, for next decade. China will have no other option than to import product from her next competitor country India. Whereas, India’s domestic consumption will grow around 50% than today. So there is a huge potential of growth, which could be visualized and rated as CAGR 27% on coming 6-7 yrs. This opportunity can be termed as ‘GOLDEN ERA OF INDIAN TEXTILE-2020”. Study shows: 1. Global Changes In Clothing Consumption By 2020, a. PER CAPITA APPAREL CONSUMPTION GROWTH( IN US $)

b. Per capita consumption in Kgs. –in 2011
Countries
N. America
Europe
China
India
World
Per capita consumption
31
22
17
7.5
11
Source: EU, CBI, US Census Bureu,NBS China, technopak

Expected rate of consumption growth in China, Brazil and India is around 13%.Out of 11kgs of per capita, Cotton represents 32% and rest for blended and Non-cellulosic fibre. c. Global apparel market expected to grow @4% ;

Year->
2000
2010
2020 (Expected)
USD (Bn)
720
1170
1725
India, China & Brazil
11%
20%
29%
Japan, EU & US
68%
55%
44%
Rest
21%
25%
27%

China, India, Brazil are expected to grow at twice the global rate ( CAGR-8%). 2. Impact On Fibre - yarn Manufacturer Supply Chains.
a. World Cotton scenario: (In Mn. Tonnes)
S. No.
Country
Production
Consumption
Export
Import
1
CHINA
6400
9600
30
2610
2
INDIA
5770
4550
1170
85
3
USA
3940
850
3130
-
4
Sub Total
16110
15000
4330
2695
5
World
24870
24460
7600
7600

% age of above 3- countries.
64.78
61,32
57.00
35.46
World cotton production likely to increase by 8%, whereas india’s growth is expected to be 11%.

b. India,s Yarn Production: ( In Mn. Kgs.) Sector wise Production of Yarn. Year
100% Cotton.yn.
% of Growth
Blended
% of Growth
100% non cotton
% of Growth
Total
’95-‘96
1788

395

195

2378
’99-‘00
2204
23.3
621
57.2
221
13.3
3046
’04-‘05
2272
3.08
585
-5.80
366
65.7
3223
’10-‘11
3491
53.6
796
36.06
427
16.7
4714
Share %
74.06

11.89

9.06

Source: EU, CBI, US Census Bureu, NBS China, technopak
CAGR of Yarn production: 25.62%. It is to be noted that uses of cotton in Indian consumer is much higher than European and North American consumers. c. India’s Fabric Production Million Sq. mtrs), Contribution of Cotton yarn-April – Dec’12 Cotton - 30593 50.50%

Blended – 8000 13.20%
Non cotton- 21973 37.30%
CAGR - 5.00%
3. Last 5 years, it has been observed that the Textile production is being shifted to the developing countries. Most producers are in south East Asia ( China, India & Others) and the high end consumers are in Europe and North America.Global Trade on Textile and Apparels has grown significantly over the years and expected to grow further as shown below:

Year
Total
CAGR
Export( in %age)
Import

In USD
In %age
India
CH+EU27
+US+TUR
Others
Ch+Jap
+Russ.
Can+EU27
+US+TUR
India& Others...
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