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FDI, private participation are some key growth drivers for textile industry

The Indian textile industry has recently been seeing exponential growth along with textile and apparel export. India is the world's second largest exporter of textiles and clothing. With readymade garments remaining the largest contributor to total textile and apparel exports from India, textile and apparel exports are forecast to increase to $82 billion by 2021.

Key growth drivers are increased penetration of organised retail, favourable demographics and rising income levels. Key highlights of the textile industry's big success are:

Foreign Investments and FDI: The hike in FDI limit in multi-brand retail is a blessing for the textile industry which will not only bring in more players, but even provide more consumer options. It will bring greater investments along the entire value chain. With international brands gaining a domestic foothold, outsourcing will also rise exponentially.

Retail sector’s growth potential: With consumerism and disposable income on the rise, the retail sector has seen a quick growth in the last ten years with several international players like Marks & Spencer and Guess etc. having entered the Indian market. The organised apparel segment is expected to grow at a CAGR of over 13 per cent over a 10 year period.

Private sector participation: While government policies and initiatives are growth drivers for the textile industry, private players to are making hay whilst the sun shines. The Central Silk Board's targets for raw silk production is a key example and to achieve these targets, alliances with the private sector, especially major agro-based industries in pre-cocoon and post-cocoon segments has been encouraged.

International demand: Growing population has been a main aspect of textile growth in the country. Moreover, according to World Bank, urban population accounts for 32.7 per cent of the total population of India. This also works as demand driver due to changing taste and preferences in the urban India. This trend has been enhanced by a young population which is growing and is being exposed to changing trends and fashion resulting in the textile industry seeing high volume demand within the country and also in exports.

 
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