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

Ending of Multi-Fibre Agreement (MFA) in 2005 has opened up post quota challenges and opportunities in the world textile and apparel trade and, in specific, for the low cost and the Asian countries.  This situation has forced to make changes in the world wherein textile activities is shifting from developed nations to developing nations due to cost advantage and India and China are the two biggest beneficiaries from the phase-out of the quotas. Favourable condition has further boasted the confidence of the Indian Textile entrepreneurs to expand or invest in big way with newer product and technology to meet the challenges and to reach a Glorious future.  Textile exporters from India who had established base in Nepal, Bangladesh, the Middle East and African countries are also become busy in relocating their base in the country.  India’s recent economical growth and huge domestic market could further prompt several international companies to look India as investment destiny and sourcing hub alongwith retail set up in the country.  Rising domestic demand along with free trade for overseas market finally have led to growth of Indian Textile and Apparel Industries. Even in 2005 , the first year of quota free regime itself Indian Textile could increase investments recording a growth of 71% to reach US$ 4.1 billion.  India has also a substantial textile and apparel export growth of 23% in the current year of 2005-06.  With our average growth rate of 10-12 % our effort is towards, how best we can reach nearer to China having almost 100% average growth for Textile.  This situation will be again clearer by 2008, when the safeguards mechanism in the US & EU against China expires.  

As per an estimate, with only tariffs to deter exports to the main quota-based trading blocs – the US, Canada and the European Union – the global trade in textiles is expected to treble from current levels of around $300 billion to about $850 billion by 2015.  The Indian Textile Industry has again the potential to breach the $70 billion mark in exports by 2014, according to Exim Bank’s latest study titled ‘Textile exports: Post-MFA scenario – Opportunities and challenges’.  With this on-going development all around, textile exports from India is expected to cross $50 billion by 2010 from the current $17 billion (2005-06) which is again 23% higher than previous year.  The domestic market is also likely to see a size of $95 billion by 2010 from the current size of $40 billion.  If trend moves in the similar direction it may reach to around  $130 billion textile export by 2015.

Exim Bank study observes that China, India, Pakistan, Taiwan, Hong Kong, Brazil, Indonesia, Turkey and Egypt would emerge as “winner”.  However, in the long-term sustaining market shares would depend on cost, quality and timely delivery of market players.  The study observed, in the long term, intra-EU trade would be reduced, providing additional opportunities for developing countries such as India.  The study further estimated that India could increase its share in the textiles markets of the US and the EU from 8.4 per cent ($1.5 billion) and 3.2 per cent ($1.9 billion) currently to a share of 13.5 per cent ($5 billion) and 8 per cent ($8 billion) respectively by 2014.   Similarly, India could increase its share in the garments market of the US and the EU from the present level 3.2 per cent (2.3 billion) and 3 per cent ($3 billion), respectively to a share of 8 per cent each ($13 billion, $16 billion, respectively) by 2014.  These two markets would account for a total market of $42 billion for Indian textiles and garments by 2015, according to the study.  According to the garment major “The post MFA regime is expected to increase the global trade in apparel at a rate of 3-5 per cent to potentially exceed $300 billion by 2015.  

State-wise development

Textile States like Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh and few others are expected to play very important role in the over all development of Indian Textile Industry in the near future. A recent CII study on textiles of Andhra Pradesh states that with the increasing productivity in cotton and capacity addition in spindlage, Andhra Pradesh has high potential to go up the textile value chain.  The State’s weaving, processing and garment industry will utilize over 70 per cent of the cotton production by 2015, a significant jump from 35-40 per cent in 2005.  The State is expected to adopt efficient ginning methodology and its spindlage is likely to jump four fold to touch 10 million spindles by 2015, the study estimates.  It reiterates that the State’s textile sector is expected to be $8 billion industry by 2015 and much of the growth will have to come from large scale value addition through weaving, processing and garmenting. 

The Study estimates that by 2015, weaving in Andhra Pradesh will increase over 5 times to touch 4139 million meter; cloth processing, a major thrust area, to grow almost 100 times to touch around 1300 million meter and the garment export will grow 40 times to 600 million pieces.  The weaving facility will jump in the proportion of the use of air jet looms, the power looms and hand looms.  From 500 air jet looms in 2005 5000 in 2015; from 44,000 in 2005 power looms will touch 61,712 in 2010 and 86,555 in 2015.  While, the handlooms will grow from 2,13,000 in 2005 to 4,56,429 in 2015. Cloth processing, a major thrust area for Andhra Pradesh, is to grow almost 100 times to touch a figure of around 1300 million meter by 2015.  Andhra Pradesh presently produces 20 tons per day of knitted fabrics, which should reach 500 ton per day by 2015. In garments, cotton garments is to dominate by constituting 70-75 per cent of the market.  The State’s garment export will grow over 40 times to 600 million pieces in 2015. 

Projected to grow at a CAGR of 12-13 per cent, the Tamil Nadu Textile Industry is all set to become a $40-50 billion industry by 2015 with the potential to create as many as 50 lakh new jobs, says a recent CII Study on ‘Mapping of Human Resource Skills in Tamil Nadu 2015’.  Identifying the textile industry as one of Tamil Nadu’s high growth sectors, the study estimates that the current sectoral manpower requirement, which is about 45-50 lakh people, is likely to touch 95 to 100 lakh jobs by 2015.  Tamil Nadu is well positioned to capitalize on the post WTO scenario, since the State has an established textile industry base.  With more than 40 per cent of the large and medium sized spinning mills in India, the State produces a third of the Indian spun yarn.

The Maharashtra government too is planning to woo the textile sector with its own policy as the state has a large cotton cultivating area and textile-dependent townships like Ichalkaranji, Malegaon and Bhiwandi.  Besides power subsidy for power looms, state is providing additional capital subsidy, over and above 20% credit linked subsidy under TUF Scheme for power loom.  This could attract new investment mainly with imported 2nd hand shuttle-less loom in those power loom cluster.  However, state is facing acute shortage of power supply, which needs to be improved.

Among the all-leading textile states in the country, Gujarat has been involved in the textile trade for centuries. The entire state specialized in some form of exotic textile weaving or the other. The state is having strong fabric base.  Each Textile Centre of the state has its own specialization – Ahmedabad is known for Cotton and Blended fabric with a strong base for manufacturing Denim, Made-ups and Ladies Dress.   Surat primarily has a Synthetic (Filament) fabric manufacturing base with wide marketing network, mainly catering the need of domestic market for Saree and Ladies dress materials.  Umargaon (Valsad), a modern Powerloom Cluster, mainly produces Synthetic Suiting and Shirting fabric and has earned a specialization in the field.

Gujarat is the largest cotton producing state (33% share) in the country with highest y8ield (655 kg per hectare).  But, over 80% cotton produced goes to other parts of the country for further value addition.  Higher power cost is one of the hindrances for the growth of Cotton Spinning in the state. However, with the availability of Natural Gas, one can now go for captive power plant for production in a more economic way. Over 40% of fabric produced in Surat goes as dress material (for garmenting) to other parts of the country.  Similarly, over 70% of cotton base fabric produced at Ahmedabad in the organized sector goes for garmenting elsewhere and there is a substantial gap for development of garment sector in the state. 

Page >> 1 >> 2 >> 3 >>4>> 5 >> 6 >> 7

Enter your search terms Submit search form