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Recent Changes and Overview of Textile and Apparel Industry in India

Abhishek Kumar Singh
Abhishek Kumar Singh Jan 03 2022 - 4 min read
Recent Changes and Overview of Textile and Apparel Industry in India
The textile is one of the largest contributing sectors of India’s exports, which contributes more than 11 per cent to the country’s total exports basket.

For a very long time, India has been one of the biggest producers of cotton in the world. As of now, total production sums up around 22 percent of world cotton production. Experiencing a sure growth in this field, the country has invested more in spinning and weaving equipment second to china. Manufacturers of textile products and machines at a global level include China, India, Pakistan, and Vietnam.

Textile industry is one of the major contributors in the Indian economy. With foreign exchange earnings of more than 35 percent, it occupies a good spot in the list. It is also one of the largest contributing sectors of India’s exports contributing 11 per cent to the country’s total exports basket.

Today, we will try to find out what are some major trends in the industry and what is the current overview of the same. We will also figure out what is the projected growth rate and how profitable it would be to jump into this industry.

Current Value

Textile industry in India is majorly based on natural fibres like cotton, jute and silk but synthetic fibre plays a crucial role in growth of the industry. Seven mega textile parks are planned to double India's textile and apparel industry size to $190 bn by 2025-26. Currently, the domestic technical textile market for synthetic polymer is worth $7.1 bn, and by 2027, it is expected to grow to $11.6 bn, growing at a CAGR of 7.2%, while the market for woven textiles is forecast to grow at a CAGR of 7.4%, to $15.7 bn by 2027, up from $9.5 bn in 2020.

Textile and apparel industry not only contributes to the economy but is the second largest employer in the country providing direct employment to 45 million people and 100 million people in allied industries. India is the second largest producer of silk in the world, 95% of the world’s hand-woven fabric comes from India.

Because of the pandemic, India became the second-largest manufacturer of personal protective equipment worldwide. India now has over 600 certified manufacturers. In 2025, the global market for ppe manufacturing is projected to reach over $92.5 bn, up from $52.7 bn in 2019.

Major Trends

However, a few trends seem to be the new direction for most of the textile market.

Technology - Technical textiles are a large and growing market right now. Countries are rehabilitating mills and buildings and hiring new staff to work on innovations like 3D printed clothing and shoes or smart fabrics with small chips that act as conductors and energy converters.

Non-Woven Fabrics - New machinery has made it possible to pursue non-woven fabrics. Nonwovens are non-yarn materials that are pressed together rather than woven. The reason this is an advantage is the labour is less intensive and the product can be made quicker and for less money. Non-woven fabrics are also very hygienic, which is great for the medical field, a large part of the textile industry.

Domestic Sales - Countries like China and the Unites States are focusing not only internationally, but domestically as well. Creating products domestically, and marketing to local communities, is creating a new and larger market for countries that are normally internationally focused.

Environmental Sustainability - The environment has become a large issue in the textile industry due to the immense use of water, the air pollution, and waste concerns. Many countries have started to really focus on green textiles. Some of the innovations are making clothing out of used coffee grounds, algae, or spoiled milk. These new textiles are unique and gaining tremendous popularity in the market.

What Plus Point Do We Have?

Several factors contribute to the growth of the textile industry. The process of extracting and processing natural fibres is ecologically friendly in India. Some apt examples are cotton and jute, both of which are extensively produced. We are also an important player in this sector due to our versatility in exporting goods via the sea route as well as via land route. Being a populous country, India has a large work force that helps in both production and exports.

Where Should We Work?           

Although the sector has seen continuous growth, there is still some room for improvement. We must address the production related problems like old machinery and unskilled laborers. Furthermore, the cost of textile production is rising due to higher interest rates, double-digit inflation, and the falling value of the Indian rupee. Several countries specialize in medical textiles or high fashion, which adds to the diversity of the textile industry.

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