10th October 2024 (9 Topics)
1
Oct
2
Oct
3
Oct
4
Oct
5
Oct
7
Oct
8
Oct
9
Oct
10
Oct
11
Oct
12
Oct
14
Oct
15
Oct
16
Oct
17
Oct
18
Oct
19
Oct
21
Oct
22
Oct
23
Oct
24
Oct
25
Oct
26
Oct
28
Oct
29
Oct
30
Oct
31
Oct
India’s Textile Sector
Context
The government recently announced ambitious plans for the Indian textile and apparel sector, targeting a total business of USD 350 billion annually by 2030 and aiming to generate 3.5 crore jobs. However, the sector has faced significant challenges in recent years, casting doubt on the feasibility of achieving this goal.
Current Status of the Sector
- The textile and apparel industry contributes nearly 2.3 per cent of India’s GDP and 10.5 per cent to the total manufacturing Gross Value Added (GVA) in FY23.
- As of 2021, the Indian textile and apparel industry was valued at approximately USD 153 billion, with about USD 110 billion coming from domestic business.
- India ranks as the third largest textile exporter globally, holding a 5.4% market share, and has the second-largest manufacturing capacity in the world.
- Despite this, the industry experienced substantial growth in FY22, with exports reaching USD 43.4 billion.
- However, a downturn in demand starting in FY23 has led to a slump in both exports and domestic consumption, severely impacting manufacturing hubs, particularly in Tamil Nadu.
Challenges
- Export Slump: Geopolitical issues and decreased demand from importing countries have negatively affected exports. High raw material prices, particularly for cotton and Man Made Fibres (MMF), have compounded the problem. The 10% import duty on cotton has made Indian cotton less competitive internationally, while new quality control orders for MMF have disrupted raw material availability.
- Traditional Business Disruptions: The rise of e-commerce and direct-to-consumer retailing is changing the landscape, with new startups entering the market. There is also increasing pressure from foreign brands to adopt sustainability practices, complicating supply chain dynamics.
- Shifts in Consumer Preferences: The demand for comfort wear, loungewear, and athleisure has surged, requiring manufacturers to adapt quickly to changing trends. Additionally, rural and semi-urban customers are increasingly favoring multi-brand outlets over lesser-known brands.
- Labor Costs and Productivity: Labor constitutes about 10% of production costs, and with average daily wages for skilled workers at Rs 550 and unskilled at Rs 450, the industry needs to invest in technology and workforce skilling to enhance productivity and minimize waste.
Government/Policies for Textile SectorPM MITRA: Pradhan Mantri Mega Integrated Textile Region and Apparel
Production-Linked Incentive (PLI) Scheme
Samarth Initiative
National Technical Textiles Mission (NTTM)
|
More Articles
Courses
Study
Notes
Home
Resources
More
