The dimesions of India’s textile industry

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The year 2017, in its initial few months, witnessed various significant as well as drastic developments that will go a long way in shaping the future of textile manufacturers in the country. In this issue of our magazine, we have taken up the intricacies involved in the implementation of chapters such as GST, duty drawback, and last but not the least, demonitisation, the industry remains positive in its vision and outlook, and will continue the same way.

The Indian fabric industry is currently estimated at a whopping figure of USD 108 billion and is likely to reach around USD 223 billion by 2021. The industry is one of the highest yielding industries of the nation and contributes approximately 5 % to India’s Gross Domestic Product (GDP). A recent study shows that the Indian fabric industry has the potential to surpass the $500 billion mark. Textile is also India’s dominant export good and the country has been exporting fabric and other industry related goods since ages. The current textile exports of the country stood at $40 billion. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world. The study also forecasts a humongous rise in domestic sales to $315 billion, from the current $68 billion, and a rapid increase in the exports to $185 billion, from the current $41 billion, in the upcoming few years.

It appears that the future of the textile industry in the country is quite stable and secure, even in the near future, as the Asian peninsula is among the leading producers of the major fibres in the world. India’s fabric industry revolves around cotton as India as India is the second largest cotton producer in the world and 60 per cent of the textile industry is also cotton based. India exports cotton fabrics majorly to Japan, United States, United Kingdom, Russia, France,Singapore, Nepal, among various other countries. Even though India has the largest share in the world trade of cotton yarn, but its trade in garments is only 4 % of the world’s total.

The statistics, are both mind boggling and appear unrealistic, but industry experts claim they are true. The size of India’s textile market is expected to touch $250 in the next two years from the present $150 billion. The domestic market is currently estimated at $110 billion and exports at $40 billion.

Fortunately, various schemes have been launched, not only to upgrade technology, but to extend financial aid to the textile sector as well. What these measures will unfold for the future of textiles and its manufacturers, remains to be seen…