What Role Does Textile Industry Plays in Indian Economy?

The Indian textile industry has existed since ages as there are historical records for manufactured and exported Indian fabrics and finished goods. The modern era of globalization has lead to a never seen before growth of the textile exporters and textile companies in India.



If you hear more of the news about the Indian economy growth, the textile industry has a major contribution in this direction. So, how the Indian textile manufacturing industry has become an attractive topic to discuss? The following discussion provides information and statistics to analyze the growth of this industry.



Recent Developments

Until the fiscal year of 2004-05, the textile industry in India had been experiencing moderate growth rate. It is from the year 2005 that the industry started experiencing high-paced growth rate. The total worth of the industry took a giant leap from US $14 billion during 2004-05 to US $17 billion during 2005-06. By the end of the year 2010, you can expect the textile worth of India to reach US $15 billion or beyond.



The growth of small and medium sized textile companies in India and popularity of b2b directories are few factors that have helped the industry to grow significantly. Improved manufacturing methods, excellent quality of textile products and increase in demand for the Indian apparels are other factors responsible for the growth.



It is estimated that the global demand for woven textiles and apparels will grow by 25 percent in 2010. The 85 percent of this demand will be fulfilled by the Asian textile industry and needless to say, India will have a major share in that.



Salient Features of Indian textile Industry

• The textile manufacturing industry in India is fed by the availability of abundant raw material.

• India has skilled and low cost textile workers available in most of the states.

• A perfect balance has been maintained between the cotton and synthetic fiber production.

• India has presence in the spinning sector that adds to its advantages in the textile industry.



India is the second largest cotton and cellulose fiber producing country. It also has 18 percent share in the global raw silk production. India is at the 6th position in the world for producing clean wool and at the 9th position as a greasy wool producer. India ranks 1st in jute production and 2nd in jute product export. As a synthetic fiber and yarn producer, India is at the 4th position in the world.



Some Impressive Figures

• India has the share of 61 percent in the global textile market.

• The Indian textile industry products have 22 percent share in the textile market and 43 percent share in the apparel market of Europe. In the USA, Indian textiles have 10 percent and Indian apparels have more than 32 percent share.

• The textile industry of India contributes 4 percent to the GDP of India. It also has a share of 17 percent in the foreign exchange earning of the country.



Apart from the clothing assortment, the Indian textile industry leads in segments like carpets, home textiles, geotextile, sailcloth and others. Besides, the industry provides employment to over 35 million people in the country. All these statistics prove the dynamically growing nature of the Indian textile industry.







Author has wide knowledge of B2B Marketplace and Business industries. For latest updates and business opportunities on textile industry in india, Visit online business directory Dir.indiaMART.com