Being diverse it covers everything from hand-spun and hand-woven sector to capital-intensive, sophisticated mill sector. Besides, the close link to ancient cultures and traditions and agriculture make it unique compared to other countries. This also provides the industry with the capacity to produce a variety of products, which are suitable for different markets, both within and outside the country.
The industry has a potential to grow five-fold over the next 10 years and touch the $500 billion on the back of growing demand for polyester fabric. This includes domestic sales of $315 billion and exports of $185 billion. Currently, the domestic market comprises of $68 billion and exports of $40 billion. The total fabric production in the country is expected to grow to 112 billion sq. mt. by 2016-17. Moreover, India’s fibre production is expected to reach 10 million tons in the same period.
Peek into exports, imports
The textiles and clothing industry is also one of the largest contributors in exports across the world. Exports of textiles and clothing are estimated to touch $64.41 billion by end of March, 2017 as predicted by Working Group constituted by the Planning Commission. In 2015, export of textile products increased marginally by 0.46 per cent to $37,137.32 million as compared to $36,967.56 million in last year.
Also, India is not dependant on import when it comes to textiles. Majority of import takes place for re-export or special requirement. In the fiscal year 2015, the import of textile products increased by 13.98 per cent touching $5,511.95 million as compared to $4,835.93 million in 2014. The textile industry is trying to get a duty cut on man-made fibre as high cost of the key raw material for making blended garments is making Indian goods uncompetitive in the global market. The industry is in consultation with the finance and revenue departments regarding this. Man-made fibre draws and excise duty of 12.5 per cent, but it has import restrictions. These lead to a cumulative duty of 29 per cent.
Positive future ahead
The last five years have seen a spurt in investments in this sector. All segments of the industry, including dyed and printed attracted FDI worth $70.82 million or Rs 444.43 crores during April 2015. The government too has launched various schemes to support the industry. Minister of State for Textiles launched a scheme to promote usage of Geotechnical Textiles in the Northeastern states, in Imphal. Also launched was a new institution, Handicrafts & Carpet Sector Skill Council to promote skill development among artisans, crafts people and workers at grassroots level. Corporates too are supporting the industry in many ways through partnerships and joint ventures with industry players. Overall, the future looks promising.
