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Importance of Textiles & Clothing Industry in Indian Economy

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Presentation on theme: "Importance of Textiles & Clothing Industry in Indian Economy"— Presentation transcript:

1 Importance of Textiles & Clothing Industry in Indian Economy
Simi Balakrishnan CUTS International

2 An Overview Indian textiles and clothing (T&C) industry is extremely varied Industry contributes about… 14% to industrial production 4% to GDP 17 % to country's export earnings Largest provider of employment after agriculture Direct employment to over 35 mn people 50 mn engaged in allied activities Self reliant in the entire value chain – fibre to fashion Supports agriculture in over 9.5 million hectares of land where cotton is cultivated.

3 India has.. Highest number of looms (1.8 mn shuttle looms; 200,000 shuttle-less looms; 3.9 mn handlooms) 2nd largest number of spindles in world (40 mn spindles) 1st in Jute production (1,900 mn kg) 2nd in silk production (15 mn kg raw silk) 2nd in cotton production (2,700 mn kg cotton fibre) 2nd in cotton exports (2,000 mn kg) 5th in man-made fibers production (2,000 mn kg) 8th in production of wool (51 mn kg)

4 India’s T&C Industry… Generated US$ 55 bn in (Domestic market bn; exports bn) Envisages to reach US$ 100 bn by 2015 (Domestic market- 57 bn; exports- 43 bn Contributed 12.5% to India’s total export in Holds 4% of global T&C exports Largest foreign exchange earning sector Registered strong growth in post quota period – US$ bn in to US$ bn in but declined in to US$ bn and increased in to US$ bn

5 Segment-wise Exports 2007-2010 (US$ mn)
Segment-wise Exports (US$ mn) . Source: Ministry of Textiles, Annual Report Category Cotton Textiles Manmade Textiles Silk 657.72 684.93 596.05 Wool 443.11 484.75 470.20 Ready Made Garments Handicrafts 961.67 Jute 327.86 303.21 218.40 Coir & Coir Prod. 160.25 150.02 160.60 Total

6 T&C Exports from India - Top ten countries
Country % Share [ ] USA 20.38 UAE 8.27 UK 7.53 Germany 6.11 France 3.80 Italy 3.76 China 2.54 Spain 2.76 Bangladesh 2.45 Netherlands 2.44

7 Source: Federation of Indian Chambers of Commerce and Industry
EU-27 Textile Imports Country Growth % Share % 2009 2008 China -12.9 29.2 29.8 India -15.6 10.6 11.2 Turkey -15.3 16.7 17.5 Pakistan -9.7 7.8 7.7 Source: Federation of Indian Chambers of Commerce and Industry

8 Domestic Demand Drivers
More than 60% of T&C production for domestic market Buoyant domestic economy Helpful demographic profile and increase in working female population Organized retailing a driver for increased consumption.

9 International Demand Drivers
Dismantling of quotas Increase in sourcing of textiles by developed markets from developing countries. Apparel spending remains significant in life style products category in developed world.

10 Projected Market for Indian T&C – 2015
Projected Market for Indian T&C – Source: Confederation of Indian Textile Industry Total T&C market US$ 100 bn Exports Market US$ 43 bn (43%) Textile Export US$ 22 bn Apparel Exports US$ 21 bn Domestic Market US$ 57 bn (57%) Domestic Textile Market US$ 28 bn Domestic Apparel Market US$ 29 bn

11 Promotion of Textiles Sector in India
Sector is modernizing rapidly Various schemes and programmes introduced Increased Investment and Plan Allocation Investment increased - Rs. 1,08,531 cr ( )

12 Thank You!

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