PhD Research Scholar, IIT Delhi Indian Textile Industry Presented by Prakash Arun Khude PhD Research Scholar, IIT Delhi

Introduction

Summary Second largest textile fiber producer in the world. India is the largest cotton and jute producer in the world. Nine million tones of fiber production in 2015-16. Second largest textile manufacturing capacity globally. India accounts for 18% of world's spindles and 9% of world's rotor. 5% share in global textiles and apparel trade.

Reasons To Invest Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibers. Comparative advantage in terms of skilled manpower and cost of production over major textile producers across globe. Focused and favorable policies instituted by the government will give the industry a fillip. Presence of entire value chain for textile production beginning from production of natural fiber to the production of yarn, fabric and apparel within the country giving edge over countries like Vietnam, Bangladesh etc. Presence of traditional  skill sectors i.e. hand loom and handicraft Market access arrangements with Japan, South Korea, ASEAN, Chile while negotiations with EU, Australia, Regional Comprehensive Economic Partnership (RCEP) countries under process. Readily available market which is poised to grow in future with increased penetration of organized retail, favorable demographics and rising income levels. The Integrated Skill Development Scheme aims to train over 2.675 million people up to 2017, covering all sub-sectors of the textile sector- textiles and apparel, handicrafts, handlooms, jute and sericulture. The Centers of Excellence focused on testing and evaluation as well as resource centers and training facilities have been set up.

Statistics Textile and apparel sector contributes 14% to industrial production, 4% to India's Gross Domestic Product (GDP) and constitutes 15% of the country's export earnings. Textile and apparel sector is the second largest employment provider in the country employing nearly 51 million people directly and 68 million people indirectly in 2015-16. Textile exports of India stood at USD 40 billion in 2015-16. India's fiber production in 2015-16 is 9 million Tones in 2015-16 and is expected to reach 10 million Tones in 2017-18. The total fabric production in India is expected to grow to 69 billion sq. mts by 2017-18 from 66 billion sq. mts in 2015-16.

FIBRE Largest producer of Cotton in the world with 5,984 million kg production in 2015-16. Largest producer of Jute in the world with 1,710 million kg production in 2013-14. Second largest producer of Silk in the world with 29 million kg production in 2014-15. One of the major producer of Wool in the world with 48 million kg production in 2014-15. Second largest producer of Manmade Fibre and Filament in the world with 2,511 million kg production in 2015-16. Opportunity: India offers huge scope for manmade fibre and filament manufacturing as currently India's fibre consumption is cotton dominated contrary to the global trends. With change in consumer preferences and awareness about health and hygiene, consumption of manmade fibres is poised to grow in future.

Spinning Weaving Apparel Second largest installed spindle capacity in the world with more than 50 million spindles in 2014-15. Second largest installed rotor capacity in the world with more than 8 million rotors in 2014- 15. Opportunity: Indian spinning sector is highly advanced and competent globally in terms of price, quality and standards. Weaving World's highest installed weaving capacity with more than 4.9 million looms (including 2.4 million handlooms) in 2014-15. Opportunity: India has already achieved strength in manufacturing of knitted and woven fabric however opportunities in value added and specialty fabrics still need to be explored. Apparel Apparel has contributed highest i.e. 42% to the textile and apparel export basket of India during 2015-16. Also, it is one of the focus areas of Government of India as the sector has huge employment generation potential. Opportunity: It is estimated that apparel sector generates 56-84 jobs per USD 0.15 million investment as compared to industry average of 6 jobs generated per USD 0.15 million investment. Looking at the high employment generating potential, Government of India has extended various benefits to this sector. Also, investors can benefit from the market access arrangement of India with countries like Japan, South Korea, ASEAN, Chile etc.

Investment Opportunities Entire value chain of synthetics Value added and specialty fabrics Fabric processing set-ups for all kind of natural and synthetic textiles Technical Textiles Apparel Retail brands Foreign Investors Rieter (Switzerland),TrUtzschler (Germany),Soktas (Turkey),Zambiati (Italy),Bilsar (Turkey),Monti (Italy),CMT (Mauritius),E-land (S. Korea),Nissinbo (Japan),Marubeni (Japan),Skaps (USA),Terram (UK),Strata Geosystems (USA),Marks & Spencer (UK),Zara (Spain),Mango (Spain),Promod (France),Benetton (Italy),Espirit (USA),Levi’s (USA),Ahlstorm (USA),Forever 21 (USA)

INDIAN TEXTILE EXPORTS 2014

REGION WISE EXPORTS (COMPARISON) 2010-11 2009-10 2008-09 Source : Ministry of Commerce

Key Players in the Textile Industry COMPANY BUSINESS AREAS Welspun India Ltd Home Textile, Bathrobes, Terry Towels Vardhman Group. Yarn, Fabrics, Sewing Threads, Acrylinc Fiber. Raymond Ltd. Suiting ,Tailored Clothing, Denim, Shirting, Woolen Outwears Alok Industries Ltd. Home Textiles, Woven and Knitted apparels Fabric, Garments and Polyester yarn Arvind Mills. Spinning, Weaving , Processing and garment production (denims, shirting, khakis, knitwear) Bombay Dyeing & Manufacturing Company Ltd. Bed linen, Towels, Furnishings, Fabric for suits, shirts ,dresses & Saris in cotton and polyester blend. Garden Silk Mills Ltd. Dyed and Printed Fabric. Mafatlal Industries Ltd. Shirting, Poplins, Bottom wear Fabrics, volies. Aditya Birla Nuvo, a diversified conglomerate of Aditya Birla Group, comprising Three divisions— Madura Garments, Jayashree Textiles & Indian Rayon. Madura Garments- Lifestyle market (Louis Philippe, Van Heusen, Allen Solly, The collective) Jayashree Textiles- Domestic linen and worsted yarn Indian Rayon- Viscose filament yarn. ITC Lifestyle Lifestyle Market Reliance Industries Ltd Fabric and formal wears.

THANKS