This document provides information on the Indian textile and clothing industry. It discusses the fragmentation of the industry between organized and unorganized sectors. It outlines major facts about the industry, including its large contribution to India's economy and exports. The document also examines the growing market size of the industry and analyzes strengths, weaknesses, opportunities, and threats. Finally, it reviews government initiatives to promote the industry.

2. Content
Fragmentation of Indian Textile & Clothing (T&C) Industry
Major Facts about Indian T&C Industry
T&C Exports from India
Growing Market Size of Indian T&C Industry
SWOT Analysis
Government Initiatives to Promote T&C Industry

3. Fragmentation Of Indian Textile & Clothing Industry
Indian T&C
Industry
RMG Cotton
Organised
Sector
Cotton Mills
(Private, Public &
Cooperatives)
Spinning
Mills
Composite
Mills
Unorganised
Sector
Handloom Powerloom
Man-Made
Fiber
Silk Woolen Jute

4. Major Facts about Indian T&C Industry
Contributes 14% to total
industrial production in
India
Contributes 4% to India’s
GDP
Accounts 13% of India’s
export earnings

5. Major Facts about Indian T&C Industry
Accounts for 14% of
world’s total production
of textile fibres and
yarns
Employs 45 million
people directly and 60
million people indirectly
Holds 63% of world
market share in loom,
majorly handloom

6. Major Facts about Indian T&C Industry
The 5th largest producer in synthetic
fibers/yarns.
The 2nd largest silk producer.
The 3rd largest in cotton and 2nd in
cellulosic fibre production.
The largest jute producer.
India

7. Growing Market Size of Indian T&C Industry
 As of March 2017, Indian T&C industry was estimated at US $ 108 billion
approx. and it is expected to reach US $ 223 billion by 2021.
 Backed by strong domestic and international demand and being the second-
largest exporter of textiles, Indian T&C industry has the potential to reach up
to a size of US $ 500 billion.
 According to Khadi and Village Industries Commission (KVIC), Indian Khadi
product sales alone are expected to exceed Rs. 5,000 crores (US $ 776.33
million) – the sales target of 2018-19.

8. Growing Market Size of Indian T&C Industry
0
50
100
150
200
250
2006 2011 2016 2021*
India's Textile & Clothing Industry Market Size (in US $ billion)
* Expected Market Size

9. Growing Market Size of Indian T&C Industry
0
50
100
150
200
250
2015 2016 2021*
Domestic Textile and Clothing
Industry Size (in US $ billion)
Textile and Clothing Exports
from India (In US $ billion)
CAGR (12.84%)
CAGR ( 12.06%)
* Expected Market Size

10. India’s Textile & Clothing Exports
 The T&C industry contributes
15% to total exports from the
country.
 The T&C export target for FY
2017-18 was set at US $ 45
billion. It is expected to reach US
$ 82 billion by 2021.
48%
7%
14%
12%
13%
6%
Percentage-wise Share of Commodities in
T&C Exports
Readymade Garment
Fibre
Yarn
Fabric
Madeup
Other Textile Products

11. Market Share of Major Textile & Clothing Exporters in Global Textile
Industry
31%
29%
4%1%
3%
4%
4%
5%
2%
2%
15%
West European countries
China
India
Pakistan
Japan
Turkey
Korea
USA
Arab Countries
Indonesia
Others

12. SWOT Analysis of Indian T&C IndustryStrengths
India is highly self-sufficient in raw material production. It can produce all types of fibres.
Cheap and skilled labour is the backbone of the Indian T&C industry.
Rich heritage and cultural diversity offer good and varied inspiration to designers here.
Rising income, increasing urbanisation and growth of purchasing power of
younger population are driving growth in the domestic market.
India’s spinning sector is highly competitive.

13. SWOT Analysis of Indian T&C IndustryWeakness
As the Indian T&C industry is largely cotton-based, a great percentage of
international market that depends on synthetic products is missed out.
Indian T&C exporters lack in specialised fabric used for making swimsuits,
skywear and other industrial apparels.
India lacks upgradation of the technology used in the spinning sector.
India’s labour force is less productive as compared to other countries
(Bangladesh and Vietnam).
Fabric processing is the weakest point of the Indian textile value chain.
Poor infrastructure with high power costs and long export lead times make
India less competitive in T&C exports.

14. SWOT Analysis of Indian T&C IndustryOpportunities
Indian textile companies must focus on product development and diversification
to capture a significant share in the global market.
India must increase its UVR (Unit Value Realisation) by producing value-added products
and by producing technologically superior products.
India has large potential domestic and international market.
India is potential enough to attract greater foreign direct investment.

15. SWOT Analysis of Indian T&C IndustryThreats
Increasing seasons per year has shortened fashion cycles.
International labour and environmental laws becoming more stringent.
Increasing competition from other apparel hubs such as Vietnam and
Bangladesh.
Changing trade dynamics such as the evolution of CPTPP might result
in lower exports from India.
Maintaining a balance between price-quality and demand-supply
is difficult to achieve.
Elimination of Quota (system) will lead to fluctuation in export demand.

16. Initiatives Taken by Government to Promote Indian T&C Industry
 100% FDI has been allowed in textile sector via automatic route.
 Upgradation of labour’s skill-set through allocation of funds and implementation of National Skill Development
Programme in the T&C sector.
 To improve the status of power loom weavers, a mega package has been planned that includes social welfare schemes,
insurance cover, cluster development and upgradation of obsolete looms along with tax benefits and marketing
support.
 To promote high-quality handloom products, the government has started promoting the “India Handloom” initiative on
social media to connect with young customers.
 An MoU has been signed between CMAI (The Clothing Manufacturers’ Association of India) and CCCT (China Chamber
of Commerce for Import and Export of Textile) to increase T&C exports from India.
 Effective implementation of sector-related policies, substantial financial support from government and creation of
investment opportunities will help this industry contribute significantly to the “Make in India” initiative.

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