India's textile exports not on the way
According to a recent CRISIL report, India’s share in global exports of cotton yarn shrunk 600 basis points to 23% in 2020 from 29% in 2015, while in readymade garments, its share has stagnated at 3-4% over the past decade
India’s textiles exports traditionally lagged behind China because of cost and scale factors, but now it has been beaten by countries such as Bangladesh and Vietnam due to another factor – the duty disadvantage.
Current status of India's textile industry :
The Indian textile industry contributes to 7% of the industry
output (in value terms) and around 15% to the India’s export earnings. The trade
of Textile and Clothing had a share of 5.38% in India’s total trade during
2019-20.
Although, India’s textile trade has been constantly increasing since 2016-17, a
slight decline in trade was witnessed during 2019-20. The total textile trade in
2019-20 stood at USD 42.36 billion compared to USD 44.89 billion in 2018-19. The
export of Textiles stood at USD 34.21 billion while the import was valued at USD
8.15 billion. The exports of textiles declined at a rate of (-) 8.74% while
imports of textiles registered a growth of 10.33% during 2019-2020. The share of
Textiles and apparel in overall export basket of India was 11.34% during
2019-20.
Major Commodities of Indian Textiles :
India’s textiles sector is broadly categorized into 25 major commodities, namely, RMG cotton including accessories; Cotton fabrics, Madeups etc., Manmade staple fibre, Carpet (excluding silk) handmade, etc.
The top 10 exported commodities of Indian Textiles account for about 95.35% of the total Textiles exports. During 2019-20 the exports of all principal commodities showed a negative growth rate except for cotton fabrics, madeups etc. (0.33%) and other textile yarn, fabric made up articles (4.23%). A major decline of (-) 49.73% was seen in exports of cotton raw including waste followed by cotton yarn (-29.14%) and manmade staple fibre (-11.87%).
India is among the world's largest producers of Textiles and Apparel. Some of the datas on indian textile industry are as follows :
The domestic textiles and apparel industry contributes 5% to India’s GDP, 7% of industry output in value terms, and 12% of the country’s export earnings. India is the 6th largest exporter of textiles and apparel in the world.
India is one of the largest producers of cotton and jute in the world. India is also the 2nd largest producer of silk in the world and 95% of the world’s hand-woven fabric comes from India. The Indian technical textiles segment is estimated at $16 bn, approximately 6% of the global market.
The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 million people and 100 million people in allied industries.
India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 bn by 2025, up from $52.7 bn in 2019.
- FDI in the textiles and apparel industry has reached up to $3.75 bn till March 2021
- India’s exports of textiles and apparel are expected to grow to $65 bn by 2025-26, growing at a CAGR of 11%
- To double the industry size to $190 bn by 2025-26, 7 mega textile parks have been planned
- The Indian technical textiles market was estimated at $20 bn in 2019-20 and grew at a CAGR of 10% since 2015-16.
- The domestic technical textile market for synthetic polymer was valued at $7.1 bn in 2020 and is projected to reach $11.6 bn by 2027, growing at a CAGR of 7.2%.
