1. India’s Textile & Apparel Industry – An Overview
Arvind Singhal
Jaipur th November 2016

2. India’s GDP: Current and Projected
India’s GDP US$ 2.1 Trillion in 2015, projected to cross US$ 3.1 Trillion (nominal) by
7.30
7.55
5.48
5.62
6.64
Annual GDP growth rate (%)
Source: worldbank.org

3. India’s GDP Break-up
Textiles & Apparel Sector comprises 5.4% of India’s GDP and 12% of India’s Manufacturing sector
Source: Planning commission, Gov’t of India, Technopak Analysis

4. T&A Sector’s Break-up in India’s GDP
GDP: USD 2,090 billion
2015
Gross rent, fuel & power
Textiles & Apparel
Public Spending and Investment:
USD 834 billion (40%)
Private Consumption:
USD 1256 billion (60%)
Medical and health services
Leisure & Education
Others
Food & Beverages
Retail:
USD 615 billion (51%)
Non-retail:
USD 641 billion (49%)
T&A Domestic Market:
USD 64 billion
T&A Exports:
USD 41 billion
Furniture, furnishing etc.
Transport & Communication
Fabric & Apparel
USD 45billion (70%)
Apparel
USD 19 billion (46%)
Other Textiles
USD 19 billion (30%)
Fiber, Yarn, Textiles
USD 22 billion (54%)
Technical Textiles
USD 15 billion (79%)
Home Textiles
USD 4 billion (21%)
Source : Technopak Analysis, *All numbers are rounded-off

5. T&A Industry Size
India’s T&A industry was about USD 104 billion in 2015 (including both domestic consumption and exports) and is projected to grow at a CAGR of 9% to touch about USD 238 billion by 2025 with domestic market being the bigger growth driver (~10% CAGR)
USD bn
CAGR 9%
Source: Technopak Analysis, *All numbers are rounded-off E: Estimate P: Projection

6. Product-wise Share of Global T&A Exports
China dominates T&A exports, with the highest share of yarn, fabric, apparel & made-ups exports
India’s share of global exports is comparatively higher in fiber, yarn, made-ups & carpets
Indonesia, Thailand, Cambodia, Mexico, Taiwan, and Vietnam are the other major T&A exporters
Source: ITC, UN Comtrade, Technopak Analysis

7. Indian Domestic Apparel Market - A Snapshot
Domestic Textile & Apparel Market (2014) : USD 64 Bn.
Men’s Apparel Market USD 19.1 Bn.
(INR 114,370 Cr.)
Women’s Apparel Market USD 17.0 Bn.
(INR 102,070 Cr.)
Kid’s Apparel Market USD 9.2 Bn.
(INR 55,440 Cr.)
42%
38%
20%
Source: Technopak Analysis

8. Relative High Receptivity To Modern Retail
Whilst corporatized retail is estimated at 8% penetration of the total retail sector, the apparel retail sector enjoys a significantly high share of corporatized retail at 20%.
Apparel retail & fashion market is expected to witness increase in corporatized retail driving growth beyond major urban clusters. This shall be driven by growth of multiple retail formats across specialty retail, hypermarket, cash and carry and e-commerce. This share is poised to grow over the next 5 years to contribute 28% share by 2019.
US$ 72.2Bn
CAGR
US$ 45.3Bn
10% 7%
17%
20%
28%
Source: Technopak Analysis

9. Indian Apparel Market: Size and Growth
India’s domestic apparel market is expected to grow at a CAGR of 10%. The growth will be driven by increases in both the per capita consumption and the average spend on apparel
Segment Split
2015 (E)
2020 (P)
2025 (P)
CAGR 10%
Source : Technopak Analysis, All Numbers are rounded off

10. Segment-wise Market Projections
Currently, menswear is the biggest segment within the apparel market; however, kidswear and womenswear are growing more rapidly. It is estimated that, within another decade, the womenswear category will rival menswear in dimension
CAGR 11.0%
CAGR 9.8%
CAGR 11.0%
CAGR 10.6%
Source : Technopak Analysis
*All numbers are rounded off

11. Home Textiles Market Overview
The Home Textiles market is expected to grow at a CAGR of 8% over the next decade
Category-wise Market Breakup (INR cr)
 Categories
2015 (E )
2020 (P)
2025 (P)
CAGR
Bed Linen
11966
17583
25835 8%
Towels
4355
6108
8567 7%
Curtains
2551
3924
6038 9%
Blankets
1887
2525
3379 6%
Upholstery
1679
2583
3974
Kitchen Linen
1455
2041
2863
Rugs & Carpets
698
1073
1651
Total
24590
35837
52306
CAGR : 8% 11
*All numbers are rounded-off
Source : Technopak Analysis

12. Major Growth Drivers For India’s T&A Industry
Higher focus from Gov’t of India on “manufacturing” sector, with Textiles being one of the big focus sectors
A relatively complete and robust fibre – finished product value chain within India
Competitive labour & energy costs
Strong growth in domestic T&A consumption, driven by multiple factors

13. Major Growth Inhibitors
Lack of globally competitive scale
Infrastructural issues leading to bottlenecks in an efficient supply chain.
Relatively lesser investment in high-value added fabric & non-cotton apparel
Inadequate availability of skilled workforce, leading to lower productivity
Absence of free trade agreements / preferential duty access with leading importing countries like USA and European Union 13

14. Thank You Very Much

15. For Further Dialogue, Please Contact:
Arvind Singhal Technopak Advisors 208, Baani The Address
1 Golf Course Road
Sector 56
Gurgaon , INDIA
T: 0124 –