Presentation on theme: "Importance of Textiles & Clothing Industry in Indian Economy"— Presentation transcript:
1Importance of Textiles & Clothing Industry in Indian Economy Simi BalakrishnanCUTS International
2An OverviewIndian textiles and clothing (T&C) industry is extremely variedIndustry contributes about…14% to industrial production4% to GDP17 % to country's export earningsLargest provider of employment after agricultureDirect employment to over 35 mn people50 mn engaged in allied activitiesSelf reliant in the entire value chain – fibre to fashionSupports agriculture in over 9.5 million hectares of land where cotton is cultivated.
3India 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)
4India’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 bnContributed 12.5% to India’s total export inHolds 4% of global T&C exportsLargest foreign exchange earning sectorRegistered strong growth in post quota period –US$ bn in to US$ bn inbut declined in to US$ bnand increased in to US$ bn
6T&C Exports from India - Top ten countries Country% Share [ ]USA20.38UAE8.27UK7.53Germany6.11France3.80Italy3.76China2.54Spain2.76Bangladesh2.45Netherlands2.44
7Source: Federation of Indian Chambers of Commerce and Industry EU-27 Textile ImportsCountryGrowth %Share %20092008China-12.929.229.8India-15.610.611.2Turkey-15.316.717.5Pakistan-184.108.40.206Source: Federation of Indian Chambers of Commerce and Industry
8Domestic Demand Drivers More than 60% of T&C production for domestic marketBuoyant domestic economyHelpful demographic profile and increase in working female populationOrganized retailing a driver for increased consumption.
9International Demand Drivers Dismantling of quotasIncrease in sourcing of textiles by developed markets from developing countries.Apparel spending remains significant in life style products category in developed world.
10Projected Market for Indian T&C – 2015 Projected Market for Indian T&C – Source: Confederation of Indian Textile IndustryTotal T&C market US$ 100 bnExports Market US$ 43 bn (43%)Textile Export US$ 22 bnApparel Exports US$ 21 bnDomestic Market US$ 57 bn (57%)Domestic Textile Market US$ 28 bnDomestic Apparel Market US$ 29 bn
11Promotion of Textiles Sector in India Sector is modernizing rapidlyVarious schemes and programmes introducedIncreased Investment and Plan AllocationInvestment increased - Rs. 1,08,531 cr ( )