Textile industry in india (aliya siddiqua , mounika, divya)
The Indian textile industry has a significant presence
in the economy as well as in the international textile
Its contribution to the Indian economy is manifested
in terms of its contribution to the industrial
production, employment generation and foreign
It contributes 20 percent of industrial production, 9
percent of excise collections, 18 percent of
employment in the industrial sector, nearly 20 percent
to the country’s total export earning and 4 percent to
the Gross Domestic Product.
The term 'Textile' is a Latin word originating from the word
'texere' which means 'to weave‘.
The history of textile is almost as old as that of human
In India the culture of silk was introduced in 400AD .
modern textile industry took birth in India in the early
India has been well known for her textile goods since very
The modern textile industry took birth in India in the early
nineteenth century when the first textile mill in the country was
established at fort gloster near Calcutta in 1818.
The first cotton textile mill of Bombay was established in 1854
by a Parsi cotton merchant .
The majority of the early mills were the handiwork of Parsi
merchants engaged in yarn and cloth trade at home and
Chinese and African markets.
Wool producing areas
Silk producing areas
Cotton producing areas
India is the second largest producer of fiber in the world
and the major fiber produced is cotton. Other fibers
produced in India include silk, jute, wool, and man-made
fibers. 60% of the Indian textile Industry is cotton based.
The strong domestic demand and the revival of the
Economic markets by 2009 has led to huge growth of the
Indian textile industry. In December 2010, the domestic
cotton price was up by 50% as compared to the December
2009 prices. The causes behind high cotton price are due to
the floods in Pakistan and China. India projected a high
production of textile (325 lakh bales for 2010 -11).There has
been increase in India's share of global textile trading to
seven percent in five years. The rising prices are the major
concern of the domestic producers of the country.
Man Made Fibers: These includes manufacturing of clothes using fiber
or filament synthetic yarns. This sector has a share of 62% of the India's
total production and provides employment to about 4.8 million people.
The Cotton Sector: It is the second most developed sector in the Indian
Textile industries. It provides employment to huge amount of people
but its productions and employment is seasonal depending upon the
seasonal nature of the production.
The Handloom Sector: Its market share is 13 % of the total cloth
produced in India.
The Woolen Sector: India is the 7th largest producer of the wool in the
world. India also produces 1.8% of the world's total wool.
The Jute Sector: The jute or the golden fiber in India is mainly
produced in the Eastern states of our country like Assam, West Bengal.
Indian is 3rd largest producer of jute in the world.
The Sericulture and Silk Sector: India is the 2nd largest producer of silk
in the world. India produces world's 18% total silk, Mulberry. Eri, Tasar,
and Muga are the 3 main types of the silk produced in the country.It is
a labor-intensive sector.
The textile sector in India is one of the worlds largest. The
textile industry today is divided into three segments:
1. Cotton Textiles
2. Synthetic Textiles
3. Other like Wool, Jute, Silk etc.
All segments have their own place but even today cotton
textiles continue to dominate with 73% share. The
structure of cotton textile industry is very complex with coexistence of oldest technologies of hand spinning and hand
weaving with the most sophisticated automatic spindles
Textile economy to grow to $ 85 bn. by 2010.
Creation of 12 million new jobs in Textile
To increase India’s share in world trade to 6%
Achieve export value of $ 40 Billion by 2010.
Modernization and consolidation for creating a
globally competitive industry.
Investment is the key for Indian textiles to make rapid strides.
The Vision Statement prepared by the Indian Cotton Mills
federation has projected that the industry has the potential to
reach a size of $85 billion by 2010 from the current level of $
36 billion. Further, the vision statement has estimated that
textile exports could touch $40 billion by 2010 from $ 11
billion in 2002. In the process, India’s share in the global textile
and clothing trade is expected to double from three percent in
2002 to six percent by 2010.
To reach these ambitious target, it is estimated that new
investment to the tune of Rs.1, 40,000 crores will be needed in
the next five years. After analyzing the capacity and technology
levels in various segments of textile Industry and the need for
modernization, funds required for various segments have been
Indian textile industry has several Strengths :
♦ Abundant Raw Material Availability
♦ Low Cost Skilled Labor
♦ Presence across the value-chain
♦ Growing Domestic Market
Indian textile industry has several Weaknesses :
♦ Fragmented industry
♦ Effect of Historical Government Policies
♦ Lower Productivity and Cost Competitiveness
♦ Technological Obsolescence
Indian textile industry has several Opportunities :
♦ Post 2005 challenges
♦ Research and Development and Product Development
Indian textile industry has several Threats
♦ Competition in Domestic Market
♦ Ecological and Social Awareness
♦ Regional alliances
The cotton textile industry is reeling under manifold
problems. The major problems are the following:
Low Yield and Fluctuation of Cotton Output
Competition from Man-made Fibers
Competition from other Countries
Accumulation of Stock
The Indian textile industry is currently one of the largest and
most important sector in the economy in terms of output
foreign exchange earnings and employment in India.
The Textile industry has the potential to scale new height in the
The industry is facing numerous problems and among them the
most important once are those of liquidity for many organized
sector units, demand recession and insufficient price
The long-range problems include the need for sufficient
modernization and restructuring of the entire industry to cater
more effectively to the demands of the domestic and foreign
markets for textiles as per the needs of today and tomorrow.