IMPORTANCE OF TEXTILE INDUSTRIES IN INDIAN ECONOMY

IMPORTANCE OF TEXTILE INDUSTRIES IN INDIAN ECONOMY

IntroductionCotton TextilesSilk TextilesWoollen TextilesReady Made GarmentsHandicraftsJuteCoir & Coir Products

% export shareWhat does a textile industries comprise of ? The Indian textile industry is as old as the world textile industry. In fact the first known cotton cultivation seems to be from India followed by UK.

Kanpur another textile industry in India also has the soubriquet "Manchester of the East" AHMEDABADManchester of INDIA=

An Overview Indian textiles and clothing (T&C) industry is extremely varied :

Industry contributes about14% to industrial production 4% to GDP 8% excise and customs revenue collections.17 % to country's export earningsLargest provider of employment after agriculture Direct employment to over 35 million people50 million 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.

Spending Patterns in India in Apparel Category

Indians are increasingly becoming conscious about their appearances.

This is seconded from the fact that the textile and apparel market is expected to grow at over 11 percent to reach Rs. 10, 00,000 crores by 2020 .

Ready to Wear and Ready to Stitch fabric would rise from 77% at present to nearly 90% of the apparel Industry size.

Following figures are in (USD billion)CAGR isn't the actual return in reality. It's an imaginary number that describes the rate at which an investment would have grown if it grew at a steady rate. You can think of CAGR as a way to smooth out the returns.

Don't worry if this concept is still fuzzy to you - CAGR is one of those terms best defined by example. Suppose you invested $10,000 in a portfolio on Jan 1, 2005. Let's say by Jan 1, 2006, your portfolio had grown to $13,000, then $14,000 by 2007, and finally ended up at $19,500 by 2008.

Your CAGR would be the ratio of your ending value to beginning value ($19,500 / $10,000 = 1.95) raised to the power of 1/3 (since 1/# of years = 1/3), then subtracting 1 from the resulting number:

1.95 raised to 1/3 power = 1.2493. (This could be written as 1.95^0.3333).1.2493 - 1 = 0.2493Another way of writing 0.2493 is 24.93%.

Thus, your CAGR for your three-year investment is equal to 24.93%, representing the smoothed annualized gain you earned over your investment time horizon.8According to Technopak analysiswomens wear market is growing faster than other apparel markets and is expected to grow at a CAGR of 14% by 2020.Meanwhile Mens apparel market is presently growing steadily at a CAGR of over 15% percent.Spending Patterns in India in Apparel Category

9Textiles exports stood at US$ 28.53 billion during April 2013January 2014 as compared to

US$ 24.90 billion during the corresponding period of the previous year, registering a growth of

14.58 per cent.

Garment exports from India is expected to touch US$ 60 billion over the next three years, with

the help of government support, said Dr A Sakthivel, Chairman, Apparel Export Promotion

Council (AEPC).GROWING TEXTILE ECONOMYI N C R E A S I N G M A R K E T S I Z EMaterialMMF(Man Made Fibre)Cotton yarn productionBlended and 100 per cent non-cotton yarn production

Cloth production by mill sectorCloth production by power loom Cloth production by hosieryPercentage increase10 per cent10 per cent8 per cent

6 per cent 2 per cent 9 per cent

Period of Rise April 2013February 2014.

Government Initiatives

Some of initiatives taken by the government to further promote the industry are as under:

Under revival, reform and restructuring (RRR) package, financial assistance to the tune of

Rs 1,019 crore (US$ 169.66 million) has been approved and the Indian government has released Rs 741

crore (US$ 123.42 million).

Government of India plans to set up a US$ 60 billion target for the current financial year, a jump of over 30 per cent from

the previous financial year.

The Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing Development

Scheme (IPDS) with a corpus of Rs 500 crore (US$ 83.28 million) to make textiles processing units more

environment-friendly and globally competitive.

Plan to set up a Rs 100 crore (US$ 16.62 million) venture capital fund to provide

equity support to start-ups in the textiles sector, in order to encourage innovative ideas in this export

intensive sector.

Rs 700 crore (US$ 116.60 million) have been allotted in the 12th Five Year Plan for the development of technical textiles. India overtakes Germany and Italy, is new world No. 2 in textile exportsYear-wise Target fixed and achievements during the last three yearsYearTargetAchievement2011-1227000333102012-1338000349332013-143400039310Year-wise Target fixed and achievements during the last three years(inUS$ Million)ACHEIVEMENTNatinal Institute of Fashion TechnlogyApparel Training & Design CentreSardar Vallabhbhai Patel Institute of Textile ManagementEducation(Textiles/Fashion)

IS INDIAN TEXTILE INDUSTRY ABLE TO MAXIMISE ITS POTENTIAL OF GAINING DOLLARS ?WOMEN EMPOWERMENT SPECIAL PROVISIONS FOR WOMEN ENTREPRENEURS

6% empoyees women in Northern India17% empoyees women in Southern India9% empoyees women in Central India

In southern India's Tirupur town the industry employs 400,000 workers regularly and an additional 500,000 seasonally where most of them women .The industry today would need an additional 1.5 million people and about 6 million in next 5 years to come.Current Textiles & Clothing exports trend:(a) Trend during the period 2011-12 (P). In rupee terms, during 2011-12 (P) there has been a surge in exports of Handloom product (68.51%), Coir & Coir Manufactures (40.49%), Cotton Textiles (37.23%), Man-made textiles (25.99%), RMG (24.80%), Wool & Woolen textile (20.97%) and Jute (4.72%). In US$ terms the surge during 2011-12 (P) registered in Handloom product (60.09%), Coir & Coir Manufactures (33.46%), Wool & Woolen textile (14.93%), Man-made textiles (19.69%), RMG (18.56%), Cotton Textiles (30.37%) and Jute (-0.52).(b) Latest Trend during the period 2012-13 (P) The total textile exports during 2012-13 (P) were valued at Rs 172494.71 crore as against Rs 159570.55 crore during the financial year 2011-12, registering an increase of 8.10 percent in rupee terms. In US dollar terms, the same was valued at US$31705.53 million (2012-13, P) as against US$33310.21 million during the corresponding period of financial year 2011-12 registering a decline of 4.82 percent.Indias textiles products, including handlooms and handicrafts, are exported to more than a hundred countries. However, the USA and the EU, account for about two-thirds of Indias textiles exports. The other major export destinations are China, U.A.E., Sri Lanka, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, Pakistan, Brazil, Hong-Kong, Canada and Egypt etc.

FDI, "... refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor." The investment is direct because the investor, which could be a foreign person, company or group of entities, is seeking to control, manage, or have significant influence over the foreign enterprise.Why Countries Seek FDI ?(a)Domestic capital is inadequate for purpose of economic growth;(b)Foreign capital is usually essential, at least as a temporary measure, during the period when the capital market is in the process of development;(c)Foreign capital usually brings it with other scarce productive factors like technical know how, business expertise and knowledgeSITP Scheme of Integrated Textile Park - The main objective is to provide infrastructure facilities for setting up textile units in potential growth areas matching with the international social and environmental standards.23

To promote apparel exports 12 locations has been approved by the government to set up apparel parks for exports To improve technical skills in apparel industry government established 75 apparel training and design centres across India National Institute of Fashion Technologies played pioneering role in growth of apparel industry and exports