Indian Textiles – 2015
   .... Looking for a Glorious future

It can be seen that besides conventional cotton and synthetic textiles, the state is also exporting certain technical and industrial textiles in the recent past.  In the year 2004-05, Gujarat exported over worth Rs.5058 crore which is 56% higher than the previous year.

TEXTILE EXPORT FROM GUJARAT
(Value : in crore)

KSA-Technopak in their The Gujarat Integrated Textile Plan Report suggested to go for Apparel led growth and to develop for new product mix like Technical Textile. Looking to the potential and growth, government of Gujarat has taken various policy measures to promote this sector in the state, such as developing Low Cost Rapier Loom, Cluster Development in Ginning and Training for skilled Manpower in Weaving and Apparel. State has released a specific scheme for setting up Apparel Training Institute in Gujarat.

Growth all around

Out of record figure of Rs.76, 000 crore (US$ 17 billion) textile export in 2005-06 there was an increase of 26 and 18 per cent growth of export in US and EU respectively.  Significant growth was recorded in Ready Made Garments segment (32.3%) followed by Cotton Textile (23%), Handicraft (23.2%) and Wool & Woollens (9.9%). However, Manmade Textile has shown a marginal downfall (-2.2%).  During the same period, spun yarn production increased by 8.5% and cloth production was more by 8.2%, while Hosiery Sectors recorded highest growth of 13.1%, followed by Handloom 8.5% and Powerloom by 7%.

In terms of investment flow, there were about of Rs.50,000 crore investment in the Indian Textile Industry in the last 5 years till 2004-05with nine textile major alone investing over Rs.2600 crore.  The investment in this sector in the year 2005-06 alone has seen further investment over Rs.80,000 crore.  Looking to the enormous potential of the industry, Ministry of Textiles has proposed for 25 Textile Parks by 2007 investing Rs.18,000 crores with an expected employment generation of half million people in the country. Today the expected and on-going employment generation in Textile is more than IT sector.  Many International players like Italian diversified group Camozzi Holding Spa, Carrera Holdings, Tessitura Monti or Sri Lankan firm Beandix is establishing a major textile plant in India.  India sees this unprecedented growth and bright future for Textile Industry after decades.
 
According to a study by CRISIL, the Indian textile and apparel industry besides achieving potential size of US$ 85 billion by 2010, would create a domestic market size of US$ 45 billion, nearly 60% of which is from ready made garments (RMG). This situation can be justified with the first year of the non-quota regime for textiles i.e. in 2005, which was seen Indian exports to the US grow by 27% worth US$ 4.6 billion, according to data released by the Office of Textiles and Apparels (OTEXA), USA. 

In another study by Confederation of Indian Textile Industry, Indian Textile Industry is expected to attract an investment of Rs 5,951 crore in 2006-07.  The maximum investment inflows would be in the spinning sector amounting to Rs.2,201 crore followed by the processing segment worth Rs. 1,581 crore, weaving with Rs.888 crore and garment with Rs.166 crore.  However, the on-going investment in this sector worth Rs.87 crore per day is quaite encouraging for the year 2005-06. with an estimated employment generation of 83000 per month as per Union Ministry of Textiles.

As per another estimate by Technopak, Indian Textile and clothing market is currently estimated to be US$ 46 billion.  The domestic market accounts for US$ 30 billion and the export market is worth US$ 16 billion and as under:

Indian Textile & Clothing Industry
(US$ 46 Billion)
 

                                                                                                Clothing
                                                                                                $ 20 billion

                                                Domestic
                                                $ 30 billion                                Others
                                                                                                $ 10 billion
$ 46 billion                                                                               
                                     
                                                                                                Clothing
Exports                                    $ 9 billion
                                                $ 16 billion                               

                                                                                                Others
                                                                                                $ 7 billion

           
Post Quota, Indian Textile and Apparel exports increased by 19% to reach US$16 billion, as under :
            2004 (US$)                                      2005 (US$)
Apparel       6.6.billion                        Apparel       8.6 billion
Textiles        6.9 billion                        Textiles        7.4 billion

Looking to the overall potential of this industry by 2010, the sector-wise additional capacity requirement has been estmated as under:

Additional Requirements of Capacity (sector-wise)

India and China; Textile industry update

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