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

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.

3. India 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)

4. India’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 bn
Contributed 12.5% to India’s total export in
Holds 4% of global T&C exports
Largest foreign exchange earning sector
Registered strong growth in post quota period –
US$ bn in to US$ bn in
but declined in to US$ bn
and increased in to US$ bn

5. Segment-wise Exports 2007-2010 (US$ mn)
Segment-wise Exports (US$ mn) . Source: Ministry of Textiles, Annual Report
Category
Cotton Textiles
Manmade Textiles
Silk
657.72
684.93
596.05
Wool
443.11
484.75
470.20
Ready Made Garments
Handicrafts
961.67
Jute
327.86
303.21
218.40
Coir & Coir Prod.
160.25
150.02
160.60
Total

6. T&C Exports from India - Top ten countries
Country
% Share [ ]
USA
20.38
UAE
8.27 UK
7.53
Germany
6.11
France
3.80
Italy
3.76
China
2.54
Spain
2.76
Bangladesh
2.45
Netherlands
2.44

7. Source: Federation of Indian Chambers of Commerce and Industry
EU-27 Textile Imports
Country
Growth %
Share %
2009
2008
China
-12.9
29.2
29.8
India
-15.6
10.6
11.2
Turkey
-15.3
16.7
17.5
Pakistan
-9.7
7.8
7.7
Source: Federation of Indian Chambers of Commerce and Industry

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.

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.

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

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 ( )

12. Thank You!