Textile Industry Overview

 

 

Textile Industry is one of the largest and oldest industries in India. It has a significant role in India as it fulfills the essential and basic need of people. Textile Industry in India stands at unique place and has maintained a sustainable growth over the years. This is a self-reliant and independent industry and has great diversification and versatility.

Textile Industry in India provides great contribution for the development of economy. It is the second largest textile industry in the world after China. It provides ample employment opportunities to people belonging to all classes. After agriculture this industry provides employment to maximum number of people in India employing 35 million people.

Textile Industry represents the rich culture, tradition, heritage & economic well-being of country with diversified range and versatility. At the same time industry is competitive enough to fulfill different demand patterns of domestic and global markets.

Indian Textile Industry plays vital role in country's economic development and contributes 14% to industrial production in the country. Textile Industry contributes around 4% of GDP, 9% of excise collections, 18% of

employment in industrial sector, and has 16 % share in country’s export. Indian Textile Industry is valued at US $ 36 bn.

The development of Indian Textile industry started in 1985. This was the year when, for the first time textile sector was considered as an important industry and a separate policy was formulated for sector’s development. In the year 2000, National Textile Policy was announced.

With further development Textile Industry came out of Quota Regime of Import Restrictions under the Multi Fiber Arrangement (MFA). This development came on 1st January 2005 under the World Trade Organization (WTO) Agreement on Textiles & Clothing.

Because of the elimination of quota restrictions, most of the developing countries now can develop the potential market at both domestic and international level. These countries can develop the industry expertise and can have competitive advantage through implementing new technology, more skilled labor,improved distribution channel, cost effective operation and production with greater value addition in each step of value chain. Moreover it will help for Foreign Direct Investment in industry that will create great opportunity to strengthen the sector.

Some of the strengths of Indian Textile Industry are large and potential domestic & international market, large pool of skilled and cheap labor, well-established industry, promising export potential etc. There is a huge demand of Indian textile products in international market because of its versatility and it is expected that industry would grow with rapid rate in future and contribute towards economic development of the country handsomely.