Industry Overview

Industry Overview • Major Producers • Consumption Statistics • Export Import Data • HS & SIC Codes • Industry Statistics • Duty Drawbacks • Textile Export Quota Policy • Custom's Duty • Proposals in Budget 2005- 2006

India's textile sector is the second largest industry after agriculture. It provides employment to about 35 million people. The country's current share in the world textile trade is only 4%, according to the study done by the World Trade Organisation. The Indian government says that it can reach to 8% share by 2010.

India is one of the leading producer of cotton, goatskin and cashmere wool. It ranks top in goatskin and third in cotton after China and United States. The fabric industry in India accounts for about 20% of total exports of the country and represent the largest net foreign exchange earner.

Size of India's Textile Industry

• The textile industry in India covers a wide gamut of activities ranging from production of raw material like cotton, jute, silk and wool to providing high value-added products such as fabrics and garments to consumers.
• The industry uses a wide variety of fibres ranging from natural fibres like cotton, jute, silk and wool to man made fibres like polyester, viscose, acrylic and multiple blends of such fibres and filament yarn.
• The textile industry plays a significant role in Indian economy by providing direct employment to an estimated 35 million people, by contributing 4 per cent of GDP and accounting for 35 per cent of gross export earnings. The textile sector contributes 14 per cent of the value-addition in the manufacturing sector.
• Textile exports during the period of April-February 2003-2004 amounted to $11,698.5 million as against $11,142.2 million during the same period in the previous year, showing an increase of around 5 per cent.
• Estimates say that the textile sector might achieve about 15 to 18 per cent growth this year following dismantling of MFA.

Exports from India to US and Europe

India's textile exports to the US have shown a good rise of 29.5% between January and June' 2005. Exports of pillow cases and bed sheets have registered a growth rate of 56.2% and 56.3% respectively. Products like towel and bed spread also figures northward by 19% and 12% respectively.

According to Confederation of Indian Textile Industry (CITI), the rise in exports of these home textile fabrics are due to the large-scale use of wide-width looms. With the rise in the use of shuttleless looms and processing sector getting fresh impetus, the production of these home textile items are able to meet both the foreign as well as the domestic demands.

There is a great demand of terry towel from European countries also. This is because of the shrinking base of the European textile manufacturers. The manufacturers are closing down their productions. A large part of the demand will be met by India, China and Pakistan.

Human Resource Chain in Indian Fabric Industry

• The fiber producers - Those who produce the raw materials used in fabrics.
  
  
• The knitting mills and weavers - Those who make the fabric.
  
  
• The dyers and finishers - Those who dye and finish the fabric.
  
  
• The designers - Those who design the garments or products.
  
  
• The contractors - Those who cut and sew the fabric.
  
  
• The manufacturers - Those who manufacturer the finished products.
  
  
• The retailers - Those who sell the products.