This document provides an overview of the Indian textile industry. It states that India is the second largest textile fiber producer and manufacturer globally, as well as the largest cotton and jute producer. It also notes that the textile and apparel sector contributes significantly to India's GDP and employment. The document discusses fiber production statistics and presents information on the spinning, weaving, and apparel sub-sectors. It outlines various government initiatives and policies to support the industry and lists key players and investment opportunities in the Indian textile market.

1. Indian Textile Industry
Presented By ~
Subhash Kumar
Parikshya
Anil Kumar

2. Introduction

3.  Second largest textile fiber producer in the world.
 India is the largest cotton and jute producer in the world.
 Nine million tones of fiber production in 2015-16.
 Second largest textile manufacturing capacity globally.
 India accounts for 18% of world's spindles and 9% of world's rotor.
 5% share in global textiles and apparel trade.
Summary

4. Reasons To Invest
 Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibers.
 Comparative advantage in terms of skilled manpower and cost of production over major textile producers across globe.
 Focused and favorable policies instituted by the government will give the industry a fillip.
 Presence of entire value chain for textile production beginning from production of natural fiber to the production of yarn,
fabric and apparel within the country giving edge over countries like Vietnam, Bangladesh etc.
 Presence of traditional skill sectors i.e. hand loom and handicraft
 Market access arrangements with Japan, South Korea, ASEAN, Chile while negotiations with EU, Australia, Regional
Comprehensive Economic Partnership (RCEP) countries under process.
 Readily available market which is poised to grow in future with increased penetration of organized retail, favorable
demographics and rising income levels.
 The Integrated Skill Development Scheme aims to train over 2.675 million people up to 2017, covering all sub-sectors of the
textile sector- textiles and apparel, handicrafts, handlooms, jute and sericulture.
 The Centers of Excellence focused on testing and evaluation as well as resource centers and training facilities have been set
up.

5. Textile and apparel sector contributes 14% to industrial production, 4% to India's Gross Domestic Product (GDP)
and constitutes 15% of the country's export earnings.
Textile and apparel sector is the second largest employment provider in the country employing nearly 51 million
people directly and 68 million people indirectly in 2015-16.
Textile exports of India stood at USD 40 billion in 2015-16.
India's fiber production in 2015-16 is 9 million Tones in 2015-16 and is expected to reach 10 million Tones in
2017-18.
The total fabric production in India is expected to grow to 69 billion sq. mts by 2017-18 from 66 billion sq. mts
in 2015-16.
Statistics

6. FIBRE
 Largest producer of Cotton in the world with 5,984 million kg production in 2015-16.
 Largest producer of Jute in the world with 1,710 million kg production in 2013-14.
 Second largest producer of Silk in the world with 29 million kg production in 2014-15.
 One of the major producer of Wool in the world with 48 million kg production in 2014-
15.
 Second largest producer of Manmade Fibre and Filament in the world with 2,511 million
kg production in 2015-16.
 Opportunity: India offers huge scope for manmade fibre and filament manufacturing as
currently India's fibre consumption is cotton dominated contrary to the global trends.
With change in consumer preferences and awareness about health and hygiene,
consumption of manmade fibres is poised to grow in future.

7. Spinning
Second largest installed spindle capacity in the world with more than 50 million spindles in 2014-15.
Second largest installed rotor capacity in the world with more than 8 million rotors in 2014- 15.
Opportunity: Indian spinning sector is highly advanced and competent globally in terms of price, quality and
standards.
 World's highest installed weaving capacity with more than 4.9 million looms (including 2.4 million handlooms)
in 2014-15.
Opportunity: India has already achieved strength in manufacturing of knitted and woven fabric however
opportunities in value added and specialty fabrics still need to be explored.
Weaving
 Apparel has contributed highest i.e. 42% to the textile and apparel export basket of India during 2015-16. Also,
it is one of the focus areas of Government of India as the sector has huge employment generation potential.
Opportunity: It is estimated that apparel sector generates 56-84 jobs per USD 0.15 million investment as compared
to industry average of 6 jobs generated per USD 0.15 million investment. Looking at the high employment
generating potential, Government of India has extended various benefits to this sector. Also, investors can benefit
from the market access arrangement of India with countries like Japan, South Korea, ASEAN, Chile etc.
Apparel

8. Growth Drivers
Rising per capita income, higher disposable incomes, favorable demographics and shift in preference for branded
products.
Increase in participation of women in workforce and awareness about hygiene & safety by Indian consumers.
Changing lifestyles and increasing demand for quality products are set to fuel the need for apparel.
Favorable government policies and incentives for manufacturers.
FDI Policy
100% FDI is allowed under the automatic route in the textile sector; investment is subject to all applicable regulations and laws.

9. The Government of India has launched the following initiatives to strengthen textile production and encourage this
industry to cater to the domestic and international market. efficiently
 Technology Up gradation Fund Scheme (TUFS)
TUFS has infused investment of more than USD 41.33 billion in the industry. Support has been
provided for modernization and up gradation by providing credit at reduced rates and capital subsidies.
 Integrated Processing Development Scheme (IPDS)
IPDS is being implemented to make Indian textiles more competitive and environment-friendly.
 Integrated Skill Development Scheme (ISDS)
ISDS plans to bridge that skill gap by training 1.5 million people for which USD 300 million has
been allocated by the government.
 Market Development Assistance (MDA)
To encourage exporters to conduct promotional activities for their products.
 Special package for Textile and Apparel sector
To boost exports, labor- friendly policies, scaling up the production and to generate over 10
million jobs in the textile industry over the period of next three years.
 Implications of Goods and Services Tax (GST) for Indian Textiles Sector
GST will result in ‘Fibre-neutrality effect’ on the Indian textiles sector, according to the Ministry
of Textiles, that means all man-made and natural fibres will be treated equally from the tax point of view
Sector Policy

10. Financial Support
Basic Custom Duty on certain specialty fibres and yarns has been reduced from 5% to 2.5%.
Basic Custom Duty has been exempted on import of certain fabrics of value equivalent to 1%
of Free on Board (FOB) value of exports in the preceding year for the manufacturing of textile
for exports.
The Excise Duty of 2% without CENVAT credit and 12.5% with Central Value Added Tax
(CENVAT) credit has been imposed on branded readymade garments and made up of price
USD 15.38 or more.
The tariff value of readymade garments and made up articles of textiles has been changed
from 30% of retail sale price to 60% of retail sale price.
The Excise Duty has been increased from 6% to 12.5% with CENVAT credit on re-cycled
Polyester Staple Fibre and Polyester Filament Yarn.
KEY PROVISIONS OF BUDGET 2016-17

11. • The Outlay for Ministry of Textile is of USD 515.39 million (including USD 51.5 million for North
Eastern Region, USD 25.77 million for Scheduled Caste Sub-Plan and USD 6.18 million for Tribal Sub-
Plan) which is mainly for:
• Amended Technology Up gradation Fund Scheme (USD 227.7 million)
• National Handloom Development Programme(USD 84.15 million)
• National Handicraft Development Programme (USD 33.69 million)
• Development of Woolen Textiles (USD 4.46 million)
• Development of Silk Industry (USD 26.54 million)
• Power Loom Promotion Scheme (USD 17.7 million)
• Textile Infrastructure (USD 24.25 million)
• Research & Capacity Building including National Institute of Fashion Technology (USD 47.51 million)
• NER Textiles Promotion Scheme including Scheme for usage of Geo Textile in North Eastern Region &
Scheme for Promoting Agro Textiles in North East (USD 39.88 million), etc.

12. • Presumptive taxation scheme under section 44AD of the Income Tax Act available for small and medium
enterprises with turnover or gross receipts not exceeding USD 0.15 million has been enhanced to USD 0.30
million.
• The corporate income tax rate for the next financial year of the companies with turnover not exceeding USD 0.76
million (in the financial year ending March 2015) has been lowered from present rate of 30% to 29%, plus
surcharge and cess.
• Service tax is exempted on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana (DDU
GKY) and services provided by Assessing Bodies empaneled by Ministry of Skill Development & Entrepreneurship.
• Higher drawback rate has been provisioned from 1.7.2012 onwards under notification No. 41/2012.
Tax Incentives:
Apart from the above, each state in India offers additional incentives for industrial projects. Some of the states also
have separate policies for the textiles sector.
Incentives are in areas like subsidized land cost, relaxation in stamp duty exemption on sale/lease of land, power
tariff incentives, concessional rates of interest on loans, investment subsidies/tax incentives, backward areas
subsidies and special incentive packages for mega projects.
State Incentives

13. Export Incentives
Incentives for units in Special Economic Zones(SEZs) / National Investment &
Manufacturing Zones(NIMZs) as specified in respective acts or the setting up of projects in
special areas such as the North-East, Jammu & Kashmir, Himanchal Pradesh & Uttarakhand.
Area Based Incentives
Export Promotion Capital Goods Scheme (EPCG).
Duty Exemption & Remission Scheme.
Merchandise Exports from India Scheme (MEIS).

14. Entire value chain of synthetics
Value added and specialty fabrics
Fabric processing set-ups for all kind of natural and synthetic textiles
Technical Textiles
Apparel
Retail brands
Investment Opportunities
Rieter (Switzerland),TrUtzschler (Germany),Soktas (Turkey),Zambiati (Italy),Bilsar (Turkey),Monti (Italy),CMT
(Mauritius),E-land (S. Korea),Nissinbo (Japan),Marubeni (Japan),Skaps (USA),Terram (UK),Strata Geosystems
(USA),Marks & Spencer (UK),Zara (Spain),Mango (Spain),Promod (France),Benetton (Italy),Espirit (USA),Levi’s
(USA),Ahlstorm (USA),Forever 21 (USA)
Foreign Investors

15. INDIAN TEXTILE EXPORTS 2014
45%
25%
18%
4%
18%
2% 2%
ready garment
cotton textile
Man-made
textiles
handi crafts
silk & handloom
Wool & Woolen
textiles
others

16. REGION WISE EXPORTS(COMPARISON)
America
30%
Europe
49%
Africa
2%
Asia
18%
Others
1%
Exports ( share %) 2010-11
America
29%
Europe
50%
Africa
2%
Asia
18%
Others
1%
EXPORTS (Share %) 2009-10
America
33%
Europe
49%
Africa
2%
Asia
15%
others
1%
EXPORTS (US$ MILLION) 2008-09
Source : Ministry of
Commerce

17. India’s Textile Exports
(in US$ billion)
17.6 19.1
22.1 21.2 22.4
26.8
0
5
10
15
20
25
30
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11

18. COMPANY BUSINESS AREAS
Welspun India Ltd Home Textile, Bathrobes, Terry Towels
Vardhman Group. Yarn, Fabrics, Sewing Threads, Acrylinc Fiber.
Raymond Ltd. Suiting ,Tailored Clothing, Denim, Shirting, Woolen Outwears
Alok Industries Ltd. Home Textiles, Woven and Knitted apparels Fabric, Garments and
Polyester yarn
Arvind Mills. Spinning, Weaving , Processing and garment production (denims, shirting,
khakis, knitwear)
Bombay Dyeing & Manufacturing Company Ltd. Bed linen, Towels, Furnishings, Fabric for suits, shirts ,dresses & Saris in
cotton and polyester blend.
Garden Silk Mills Ltd. Dyed and Printed Fabric.
Mafatlal Industries Ltd. Shirting, Poplins, Bottom wear Fabrics, volies.
Aditya Birla Nuvo, a diversified conglomerate of Aditya Birla Group,
comprising Three divisions—
Madura Garments, Jayashree Textiles & Indian Rayon.
Madura Garments- Lifestyle market (Louis Philippe, Van Heusen, Allen
Solly, The collective)
Jayashree Textiles- Domestic linen and worsted yarn
Indian Rayon- Viscose filament yarn.
ITC Lifestyle Lifestyle Market
Reliance Industries Ltd Fabric and formal wears.
Key Players in the Textile Industry

19. THANKS