India
Textile Industry is one of the leading textile industries in the world. Though
was predominantly unorganized industry even a few years back, but the scenario
started changing after the economic liberalization of Indian economy in 1991.
The opening up of economy gave the much-needed thrust to the Indian textile
industry, which has now successfully become one of the largest in the world.
India
textile industry largely depends upon the textile manufacturing and export. It
also plays a major role in the economy of the country. India earns about 27% of
its total foreign exchange through textile exports. Further, the textile
industry of India also contributes nearly 14% of the total industrial
production of the country. It also contributes around 3% to the GDP of the
country. India textile industry is also the largest in the country in terms of
employment generation. It not only generates jobs in its own industry, but also
opens up scopes for the other ancillary sectors. India textile industry
currently generates employment to more than 35 million people. It is also
estimated that, the industry will generate 12 million new jobs by the year
2010.
Various
Categories
Indian
textile industry can be divided into several segments, some of which can be
listed as below:
- Cotton
Textiles
- Silk
Textiles
- Woolen
Textiles
- Readymade
Garments
- Hand-crafted
Textiles
- Jute
and Coir
The Industry
India
textile industry is one of the leading in the world. Currently it is estimated
to be around US$ 52 billion and is also projected to be around US$ 115 billion
by the year 2012. The current domestic market of textile in India is expected
to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion.
The textile export of the country was around US$ 19.14 billion in 2006-07,
which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is
also expected to increase from 4% to 7% within 2012. Following are area,
production and productivity of cotton in India during the last six decades:
Year
|
Area
in lakh hectares
|
Production
in lakh bales of 170 kgs
|
Yield
kgs per hectare
|
1950-51
|
56.48
|
30.62
|
92
|
1960-61
|
76.78
|
56.41
|
124
|
1970-71
|
76.05
|
47.63
|
106
|
1980-81
|
78.24
|
78.60
|
170
|
1990-91
|
74.39
|
117.00
|
267
|
2000-01
|
85.76
|
140.00
|
278
|
2001-02
|
87.30
|
158.00
|
308
|
2002-03
|
76.67
|
136.00
|
302
|
2003-04
|
76.30
|
179.00
|
399
|
2004-05
|
87.86
|
243.00
|
470
|
2005-06
|
86.77
|
244.00
|
478
|
2006-07
|
91.44
|
280.00
|
521
|
2007-08
|
94.39
|
315.00
|
567
|
2008-09
|
93.73
|
290.00
|
526
|
Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet managed to retain its position as world's second highest cotton producer.
Strengths
- Vast
textile production capacity
- Large
pool of skilled and cheap work force
- Entrepreneurial
skills
- Efficient
multi-fiber raw material manufacturing capacity
- Large
domestic market
- Enormous
export potential
- Very
low import content
- Flexible
textile manufacturing systems
Weaknesses
- Increased
global competition in the post 2005 trade regime under WTO
- Imports
of cheap textiles from other Asian neighbors
- Use
of outdated manufacturing technology
- Poor
supply chain management
- Huge
unorganized and decentralized sector
- High
production cost with respect to other Asian competitors
Cotton Exports from India
Year
|
Quantity
(in lakh bales of 170 kgs)
|
Value
(in Rs./Crores)
|
1996-97
|
16.82
|
1655.00
|
1997-98
|
3.50
|
313.62
|
1998-99
|
1.01
|
86.72
|
1999-00
|
0.65
|
52.15
|
2000-01
|
0.60
|
51.43
|
2001-02
|
0.50
|
44.40
|
2002-03
|
0.83
|
66.31
|
2003-04
|
12.11
|
1089.15
|
2004-05
|
9.14
|
657.34
|
2005-06
|
47.00
|
3951.35
|
2006-07
|
58.00
|
5267.08
|
2007-08
|
85.00
|
8365.98
|
2008-09
|
50.00
|
N.A.
|
Year
|
Quantity
(in lakh bales of 170 kgs.)
|
Value
(Rs./Crores)
|
1996-97
|
0.30
|
56.42
|
1997-98
|
4.13
|
497.93
|
1998-99
|
7.87
|
772.64
|
1999-00
|
22.01
|
1967.92
|
2000-01
|
22.13
|
2029.18
|
2001-02
|
25.26
|
2150.01
|
2002-03
|
17.67
|
1789.92
|
2003-04
|
7.21
|
880.10
|
2004-05
|
12.17
|
1338.04
|
2005-06
|
5.00
|
695.77
|
2006-07
|
5.53
|
752.29
|
2007-08
|
6.50
|
986.33
|
2008-09
|
7.00
|
N.A.
|
Current
Facts on India Textile Industry
- India
retained its position as world’s second highest cotton producer.
- Acreage
under cotton reduced about 1% during 2008-09.
- The
productivity of cotton which was growing up over the years has decreased
in 2008-09.
- Substantial
increase of Minimum Support Prices (MSPs).
- Cotton
exports couldn't pick up owing to disparity in domestic and international
cotton prices.
- Imports
of cotton were limited to shortage in supply of Extra Long staple cottons.