Indian Textile Industry: An Overview
Textile industry provides one of the basic requirements of the Community and is owned by importance; to maintain the development of the continuous growth in the quality of life. delivering Raw materials of finished products, it must obtain it in a position themselves dependent on the industry and the significant added value addition at every stage of dealing; it is an essential contribution to the country’s economy.
Today, the textile and clothing industry engages an important role in the Indian economy. As the major source of foreign exchange, which is about 35% of its body, contribute to about 30% of India’s exports and 14% of industrial production, waiting over 6% of GDP in 2005, and it is considered the second largest employment sector of vital importance after the initiator in the agricultural sector.
Textile Under the World Trade Organization (WTO) and the clothing, textile quota system of quantitative import within the constraints of multi-fiber arrangement (MFA) expired on top of 01 january 2005, developing countries such as India flourish in the new competitive atmosphere and as a result, the Indian textile industry is stronger place in both export and domestic markets.
All in one conventional yarn and fabrics, currently India is exporting to more than 100 garment product portfolio. Many of the world’s leading brands such as Banana Republic, Tommy Hilfiger, Gap, Liz Claibome, Polo, etc., sourcing products from India.
Huge investment, persistence, innovation, the latest range of products and planned marketing, today, India has come out as a thriving center for outsourcing in the textile and apparel industry to meet the global requirements of manufacturing and wire products. Given the rise rapport with major global brands, the dismantling of the quota system in 2005 when the era of hit India is the world’s largest outsourcing hub.
Competitive advantage and the potential growth of Synthetic Textiles Sector
Indian synthetic textiles sector is a relatively modern and has great growth potential, which will help India becoming a major outsourcing hub. With a compounded annual growth rate of more than 22% of exports of MMF textile stretched out the level of US $ 1.62 billion from 2002-03 small exports in 1954. The export growth in 2002-03 until the matches of the previous year was 30 per cent of the harmony, and the MMF textile sector is the only sector in which performance is to go beyond the objectives set out this year to US $ 115 million euros.
Indian synthetic textiles are becoming increasingly involved in the implementation of a new market to keep the market share in existing markets. Currently, India’s exports of synthetic textiles, targeting more than 175 countries around the world, where the share of the Middle East for more than 32 per cent of our exports and the share of highly quality-conscious European Union, about 23 per cent.
Over the years, the Indian MMF textile sector has built an export base; and the share of export of MMF textile exports throughout the Indian textile has been featured on the share moved up from 10.38% in 2000-01 is 11.46% in 2001-02 and by about 14% in 2002-03.
Currently, the Indian exports of synthetic fibers in the US will rise more than 90% per year. It is also observed that the increase in exports is striking after a large money market funds textile articles dismantling the quota system in 2005.
Further more, in Indonesia, Korean exports of synthetic textiles for turning down compared to the previous year. The production capacity is Korea has declined by more than 30% of polyester filament in the field in 2002 and in 2003, and is expected to begin to fall even more, which in turn ends down their export of PFF. Due to the anti-dumping duty is polyester filament fabrics from Taiwan and Korea, countries such as Brazil, gaining more opportunities in India there are a larger exporter of synthetic fabrics.
in the world, a synthetic textile trade accounted India also see increases. The export share of Indian synthetic textiles worldwide rose by 0.11% in 1971 to 1.12% in 1991 and around 3% in 2002. This suggests that the rising performance of Indian synthetic textile materials to the world market.
There is still a chance to explore new market segments such as Latin America and Africa all together to maintain the share of the mature markets, such as the European Union and the United States. At this point, the annual growth estimated at 15% for synthetic fibers and exports are expected to touch US $ 2.5 billion in 2005-05 and US $ 4.3 billion in 2009-10.
Why India is emerging as a major BPO Centre?
its exclusive return of the Indian textile industry is expected to rise the most important supplier in the world. Related encouraging aspects that contribute to the emergence of India as BPO central textiles, are as follows:
1. Low labor cost: The industry is oriented mainly in labor and automation has made a large number of process so inexpensive labor.
2. Low cost of raw materials: purchase of raw materials is due to lower India’s third-largest producer of cotton in the world.
A huge range of products: Due to the many ethnic fashion trends and cultural diversity, it offers a greater range of products.
4. Rising domestic textile market: There is a huge potential growth of the industry due to rising incomes and the middle class.
5. Bulky exports: the overseas market, India has been a well-established exporter of clothes.
Government of content: the textile industry is protected for consideration is the second largest creator of jobs that can operate for its support.
1. optimistic about the prospect: International clothing retailers are eager to dealing with India.
Indian textile outsourcing expands to buyers in the United States, Europe and Africa due to huge support from skilled, low-cost workers, and adequate access to raw materials in India. Cost reduction is successful supply chain management, it expects global retailer of software such as Wal-Mart, JC Penney, etc. In the past, JC Penney, an international clothes retailer had sent a team to India to investigate the textile industry development, and then to prove the benefits they are showing an interest in doubling the outsourcing after India multi-fiber agreement ends. And they are optimistic and expect growth of the Indian textile industry.
2. Innovative chance: Indian Fashion Industry marked signals outsourcing
Even when the IT and textiles, fashion Outsourcing India attracts international buyers like Saks Fifth Avenue and brown, expecting has plenty of exclusive Indian design, for which there are ready-made markets abroad. Recently, visitors buyer Dubai, Pakistan and Hong Kong, USA, UK, France visited the Lakme India Fashion Week Show and got the attention, these buyers will see an opportunity to wear western Indian crux of the matter.
3. Tree chance: Indian textile industry is well-known for their excellence and attractive colors for many years more than 5,000 years and have attracted experts from around the world. Textiles India’s stand on the second excellent craftsmanship of the Indian weaver. Skill weaving skillful fingers sketching designs and produces models, is a great skill, which has been offered through the generations from father to son, from time immemorial, also regional areas have particular kinds of dressings and accompaniments offering new attention. Skill regional art, the generation of skills in art, new screen printing and computer programs for the new digital technology brings ever green opportunities in India and the emergence of a global center for art and design soon.
4. innovative efforts taken by the Government of
. The applications of the project cost of Rs. 18 467 crore has been approved in the amount of financing of Rs. 8505 crore, under the Technology Up-gradation Fund Schemes (TUFS), Ministry of Textiles, India. For weaving and processing sector of the interest subsidy has also been added under the TUFS, which guarantee the production and export of high-quality value-added products.
. Apparel Export Parks, Centers and Textile Infrastructure Development Scheme, de-reservation of the field of clothing, specialized textile parks, EOU & EPZ was established
. Rise ceilings and FDI investment is freely allowed in the textile sector
. Improve productivity and quality of cotton, introduced the Cotton Technology Mission
. Reduction of basic customs duty on selected textile machinery and spare parts
. The other excise duty on Textiles and textile goods (AT & T) and Additional Excise (Goods of Special Importance) Act have been eliminated
. Reduction of excise duty polyester filament yarn
. The Government’s policy of liberalization and supports innovative over the past couple of years has demonstrated tremendous growth
. The Government has adopted to simplify the procedures and formalities to exporters.
. A versatile production system in a small batch of the ruling Indian textile industry and is able to handle better deformation requirements.
. Investments Jacquard Weaving & Printing will increase India’s textile industry, these high-value-added products more importance on the world market
. Market Development Assistance (MDA) is a further move better marketing focus on Latin America, Africa and Asia Pacific regions
. with countries such as Sri Lanka, Mercosur, Singapore, South Africa, Bangladesh, Thailand and China etc. series of special trade agreements have been signed which controls India’s exports of rapid growth.
. Employment Generation:
Textile industry itself has an opportunity to create 1.2 crore during the employment opportunity for the next five years. The Government will continue to encourage growth within the textile industry because it has a huge potential for job creation and exports.
According to a study by Mc Kinsey, India could be a major supplier of the EU after the EU and the US markets post the quota system. Although the market share of the quota system in the post-defining bases on the various actions to be taken to keep the US and the EU, it is accepted that there would be a certain rely on China, which would limit the market share of China’s growing global market.
India’s textile exports are projected to touch US $ 15 billion in fiscal 2005-2006 from US $ 13.6 billion last year. This includes a significant part of the main chains outsourced. Exports are expected to touch US $ 50 billion by the year 2010, which accounted for clothes is more than US $ 25 billion dollars. Targeted segmented market for Indian textiles and clothing are the United States, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan.