The Indian textile industry is the industry with the second largest number of employees after agriculture. According to data from the Ministry of Textiles of the Central Government of India, India’s textile industry is the second largest in the world, directly employing more than 35 million people, with total output accounting for 17% of the manufacturing industry, accounting for 4% of India’s gross national product (GDP), and accounting for 11% of export value. The total output value of India’s textile industry from 2012 to 2013 was estimated to be nearly US$80 billion, of which approximately 64% was supplied to the Indian domestic market and export sales accounted for only 36%.
Fiber products are diverse and occupy an important position
Looking at the Indian textile and garment industry, it can be divided into yarn and fiber (including natural and artificial), processed fabrics (including woolen textiles, silk textiles, jute textiles, cotton textiles and technical textiles), and readymade garments (Readymade Garments, referred to as RMGs) and clothing. As the world’s second largest fiber producer, India’s main production type is cotton, and as many as 23 different varieties of cotton are used to produce various fabrics. Others include silk, linen, wool and man-made fibers. Diversified production allows India’s fiber products occupy an important position in the world, and its abundant labor force has also made the country a world procurement center. It is estimated that the market size of India’s textiles and garments will reach US$221 billion in 2020.
In recent years, the most significant change in the Indian textile industry has been the emergence of man-made fibers (MMF). India has successfully sold innovative man-made fiber textiles to the world. In 2013, the annual output of man-made fibers and cotton yarn in India increased by 6%. , the annual output of non-cotton yarn increased by 5%, and the annual output of the entire apparel industry increased by 2%. With the official support of India and the planning of the Indian Garment Export Promotion Council (AEPC), India’s garment exports are expected to reach US$60 billion from 2014 to 2016.
In fact, India is the world’s third largest cotton producer after China and the United States, as well as the world’s largest jute producer and the second largest raw silk producer. The output of Indian textile-related products, including handlooms, ranks first in the world, accounting for 61% of the world’s total output. In 2013, textile exports accounted for 30% of India’s total exports, and earned approximately 27% of the total foreign exchange through textile exports. It is estimated that this year (2015) has the potential to reach the target of US$220 billion. Therefore, the growth and development of this industry directly affects the economic lifeline of India.
The economy is growing rapidly and the demand for clothing is increasing
In India, due to economic growth and rising people’s income, the demand for clothing has increased. At present, the government has allowed 100% foreign direct investment in the textile industry. From April 2000 to February 2013, foreign direct investment (FDI) ) amounted to US$1.22 billion. Global apparel manufacturers including HugoBoss, LizClaiborne, Diesel and Kanz have all set up factories in India. Global retail clothing giants have outsourced production to India, and the industry has also moved up the value chain. It is expected that Africa and Latin America will be the main markets for Indian textiles in the next ten years.
The government strongly supports and promotes textile exports
The Indian government also strongly supports the garment industry. From 2009 to 2014, the government prepared a budget to promote a number of policies to promote textile exports and allowed foreign direct investment in textiles in India. Due to these policy measures, the textile industry has been pushed to the fastest growing stage in the past 60 years, with an annual growth rate of approximately 8%-9%. In the past five years, the Indian textile industry has experienced a small investment peak, with industries such as dyeing and printing attracting foreign direct investment amounting to 642.818 million rupees (equivalent to approximately 1.03 billion US dollars). Currently, the Indian government is actively visiting Japan, Germany, Italy and France to attract foreign investment in the textile industry. In India’s 12th Five-Year Plan (2012-2017), the federal government allocated a budget of US$9.1 billion in the textile industry, more than double the previous Five-Year Plan (the 11th Five-Year Plan allocated 40 billion in the textile industry One hundred million U.S. dollars).
With increasing urbanization and the growth of a young population, only 32% of India’s population currently lives in urban areas, and the remaining 68% still live in rural areas. However, in the next 20 years, the urban population will increase by another 300 million people, and these people will change their clothing buying habits due to their new lifestyles. With the growth of India’s economy, the consumption behavior of urban residents has also changed, and the demand for clothing has begun to diversify according to different occasions.
India is in a period of rapid economic growth and rapid urbanization. The textile and ready-made apparel market has thus produced a large group of consumers with high spending power and attention to fashion trends. Therefore, both local and international players in India have great expectations for this highly growing and rapidly changing ready-made apparel market. In addition, with the growth of major institutional buyers of industrial textiles such as military, railways, hospitals and government hospitals across the world, the Indian textile industry is applying textile technology in packaging materials industry, agriculture, overheat protection, as well as blood absorbent materials, safety belts Products such as tapes, tapes and consumer goods are also quite promising and are emerging areas that will gain momentum in the future.