July 1, 2009 ( PowerHomeBiz.com )
India -
Old is gold, they say. This cliché perfectly suits our Indian textile and
apparel industry. One of the oldest yet counted among the top most sectors
of the country; the industry has evolved into being one of the largest
foreign exchange earning sectors of the country.
Today, the Indian textile and apparel sector accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and more than 13% of the country's total export earnings. In fact, the sector is witnessing unprecedented growth, providing employment opportunities to more than 35 million people.
The Indian textile industry is projected to be about US$ 52 billion and probably may reach US$ 115 billion by 2012. The local market may too receive a boost; from US$ 34.6 billion it may probably register US$ 60 billion by 2012. In fact, India's exports probably will increase from 4% to 7 % in the upcoming years.
India's textile exports have climbed up from US$ 19.14 billion in 2006-07 to US$ 22.13 billion in 2007-08, clocking a growth rate of over 15 per cent.
Textiles and Apparels, Made-in-India Export Figures
As per the data released by Ministry of Textiles, textiles worth US$ 15.27 billion were exported by India during April-December 2008.
Textiles, handlooms and handicrafts made-in-India are exported to over 100 countries. In fact, US have become the largest buyer of Indian textiles and apparels. Readymade garments (RMG) made-in-India form almost 41% of total Indian textile exports. RMG exports were worth US$ 9.06 billion in 2007-08. During April 2008-February 2009, RMG exports reached a figure of US$ 8.59 billion, an increase of 4.86 per cent over the corresponding period of 2007-08.
Also, apparel has grown into the second largest retail category in the country. Interestingly, the local apparel retailing industry is reportedly around US$ 2.7 billion and despite recession it is likely to grow at 5-7% in 2009-10.
Textile and Apparel Sourcing
India is fast emerging as the global textile and apparel-sourcing hub with its massive multi-fiber raw material base, well set production base, design competency and expert labour force.
According to the Confederation of Indian Industry-Ernst & Young Textiles and Apparel Report 2007, the Indian sourcing market is projected to grow at an annual average rate of 12 per cent from an estimated market size of US$ 22 billion-US$ 25 billion in 2008 to US$ 35 billion-US$ 37 billion by 2011.
Also, world's renowned fashion brands such as Hugo Boss, Diesel and Liz Claiborne are increasing their sourcing from India.
Government schemes to boost the textile exports
In an attempt to increase India's share in the world textile market, the government of India has launched a number of crucial schemes like:
- 100% FDI flow via the automatic route.
- De-reservation of readymade garments from the small-scale industries sector in 2000.
- In February 2000, Technology Mission on Cotton was introduced to ensure that quality raw material available at competitive prices.
- In 1999, Technology Upgradation Fund Scheme (TUFS) was launched to assist upgradation of the textiles industry. Now seeing its popularity it has been given further extension till 2011-12. A total of 18773 applications at a project cost of US$ 24.91 billion have been sanctioned under TUFS upto March 31, 2008.
- 40 textile parks are being established under the Scheme for Integrated Textile Parks (SITP) which will bring in investment worth US$ 4.38 billion.
http://www.made-from-india.com/
