The Journey of textile industry in India so far
India had been the textile exporter for perpetuity. From the Indus Valley Civilization, where cotton was first cultivated and woven into textiles, to the Mughal era, the industry flourished, developing sophisticated weaving techniques and introducing new designs and patterns. In the colonial period, British rule led to the modernization of industry and the establishment of textile mills. After independence, the Indian government implemented policies to promote the growth of the domestic textile industry, resulting in the development of a solid and diverse textile industry. Today, India is one of the world’s largest producers and exporters of textiles, with a wide range of products, including cotton, silk, wool, and synthetic fabrics.
The market size of the textile industry in India
The textile market in India is one of the oldest and most diverse in the world. It is also one of the largest, with a market size of around 223$ billion in 2020. The industry is the largest producer of cotton and jute, 2nd largest in silk, and 95% of hand-woven fabrics globally are from India. The textile industry in India employs around 45 million people directly and 60 million indirectly.
The Indian textile market is segmented into several sub-segments, including cotton textiles, silk textiles, woolen textiles, synthetic textiles, and technical textiles. Cotton textiles are the largest segment, accounting for around 45% of the total textile market.
The global textile Market & growth aspect of Industry
The global apparel market has recovered and is developing rapidly after the pandemic. It is expected to grow at a CAGR of 4% and reach $2 trillion by 2025. The US is currently the largest market, worth $257 billion, with a CAGR of 5%, while the EU-27 market has declined by 11% post-Covid and is worth $211 billion. However, Asian countries are catching up fast. According to a report titled “Building a Roadmap for $250 Billion Sustainable Textile Industry,” developing economies like China and India are growing at higher rates than developed regions due to increasing domestic markets and disposable income. Together, these markets make up 59% of the total apparel market, with the rest of the world making up the remaining 41%. China, the third largest market, is expected to grow at a CAGR of 11% and become the largest market, worth $340 billion by 2025. Other significant markets, including Japan, India, Brazil, and Canada, are also trying to be essential players in this growing market.
The biggest opportunities & challenges for India in the coming days.
India scaled its highest-ever exports tally at $ 44.4 Bn in Textiles and Apparel (T&A), including Handicrafts in FY 2021-22, indicating a substantial increase of 41% and 26% over corresponding figures in FY 2020-21 and FY 2019-20, respectively. Shows the extensive opportunities for growth in the lucrative textile market, and Indian companies have the chance to be a major player in this growing market. It presents significant opportunities due to the increasing trend of industrialization in consumer goods and labour-intensive industries. The country’s large population, rising disposable income, and growing fashion industry are all factors that are likely to drive growth in the market. Additionally, the government of India has implemented several policies and initiatives to promote the textile industry, such as the National Textile Policy and the Technology Upgradation Fund Scheme, which are expected to boost the sector further.
However, the textile industry in India also faces challenges such as government policy changes, lack of access to technologies, and competition from neighboring nations. To overcome these challenges, the Indian textile sector must focus on technological upgrades, expansion of weaving capacity, and providing assistance to small and large-scale players. Additionally, ensuring a sufficient supply of gas, implementing capital subsidies, a single point of contact for resolving industry issues, and a set price for yarn annually would aid the industry’s growth.