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

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Presentation on theme: "Importance of Textiles & Clothing Industry in Indian Economy Simi Balakrishnan CUTS International 1."— Presentation transcript:

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

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. 2

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

4 India’s T&C Industry… Generated US$ 55 bn in 2008-09 (Domestic market- 33.4 bn; exports- 21.6 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 2009-10 Holds 4% of global T&C exports Largest foreign exchange earning sector Registered strong growth in post quota period – US$ 14.03 bn in 2004-05 to US$ 22.15 bn in 2007-08 but declined in 2008-09 to US$ 20.94 bn and increased in 2009-10 to US$ 22.42 bn 4

5 Segment-wise Exports 2007-2010 (US$ mn). Source: Ministry of Textiles, Annual Report 2010-11 Category2007-082008-092009-10 Cotton Textiles6858.634803.525711.41 Manmade Textiles 3177.113325.883970.88 Silk657.72684.93596.05 Wool443.11484.75470.20 Ready Made Garments 9069.8010383.2610064.73 Handicrafts1452.281090.77961.67 Jute327.86303.21218.40 Coir & Coir Prod. 160.25150.02160.60 Total22146.7821226.3422418.79 5

6 T&C Exports from India - Top ten countries Country% Share [2008-09] USA20.38 UAE8.27 UK7.53 Germany6.11 France3.80 Italy3.76 China2.54 Spain2.76 Bangladesh2.45 Netherlands2.44 6

7 Source: Federation of Indian Chambers of Commerce and Industry EU-27 Textile Imports CountryGrowth %Share % 2009 Share % 2008 China-12.929.229.8 India-15.610.611.2 Turkey-15.316.717.5 Pakistan-9.77.87.7 7

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. 8

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. 9

10 Projected Market for Indian T&C – 2015. 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 10

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 (2004-08) 11

12 Thank You! 12


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