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Indian Garment Industry - An Overview: 3.1 History of Textile
Indian Garment Industry - An Overview: 3.1 History of Textile
Indian Garment Industry - An Overview: 3.1 History of Textile
CHAPTER III
time moves on, the history of textile has further enriched itself. In the 6th and 7th
century BC, the oldest recorded indication of using fibre comes with the invention of
flax and wool fabric at the excavation of Swiss lake inhabitants. In India the culture
of silk was introduced in 400AD, while spinning of cotton traces back to 3000 BC.
In China, the discovery and consequent development of sericulture and spin silk
methods got initiated at 2640 BC while in Egypt the art of spinning linen and
weaving developed in 3400 BC. The discovery of machines and their widespread
Revolution of the 18th and 19th centuries. The discoveries of various synthetic
fibres like nylon created a wider market for textile products and gradually led to the
1) Cotton
2) Wool
3) Silk
4) Nylon
5) Polyester
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has traditionally meant. "a woven fabric". The term comes from the Latin word
Iexer', meaning to 'icaie. Fibres are used to weave clothes and these are the raw
materials tbr all fabrics. Some fibres occur in nature as fine strands that can be
twisted into yarns. These natural fibres come from plants, animals, and minerals. For
most of history, people had only natural fibres to use in making cloth. But modern
science has learned how to produce fibres by chemical and technical means. Today,
these manufactured fibres account for more than two-thirds of the fibres processed
fibers produce soft, absorbent fabrics that are widely used for clothing, sheets, and
towels. Fibres of the flax plant are made into linen. The strength and beauty of linen
have made it a popular fabric for fine tablecloths, napkins, and handkerchiefs.
The main animal fibre used for textiles is wool. Another animal fibre, for
example silk, produces one of the most luxurious fabrics. Sheep supply most of the
wool, but members of the camel family and some goats also furnish wool. Wool
provides warm, comfortable fabrics for dresses, suits, and sweaters. Silk comes from
cocoons spun by silkworms. Workers unwind the cocoons to obtain long, natural
filaments. Fabrics made from silk fibres have great luster and softness and can be
dyed with brilliant colours. Silk is especially popular for saris, scarfs and neckties.
Most manufactured fibres are made from wood pulp, cotton linters, or
petrochemicals. Petrochemicals are chemicals made from crude oil and natural gas.
The chief fibres manufactured from petrochemicals include nylon, polyester, acrylic,
and olefin. Nylon has exceptional strength, wears well, and is easy to launder. It is
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popular for hosiery and other clothing and for carpeting and upholstery. Such
products as conveyor belts and fire hoses are also made of nylon.
Majority textiles are produced by twisting fibres into yarns and then
knitting or weaving the yarns into a fabric. This method of making cloth has been
used for thousands of years. But throughout most of that time, workers did the
textile mills can manufacture as much fabric in a few seconds as it once took
Indian textile enjoys a rich heritage and the origin of textiles in India traces
back to the Indus Valley Civilization where people used homespun cotton for
weaving their clothes. Rigveda, the earliest of the Veda contains the literary
information about textiles and it refers to weaving. Ramayana and Mahabharata, the
eminent Indian epics depict the existence of wide variety of fabrics in ancient India.
These epics refer both to rich and stylized garment worn by the aristocrats and
ordinary simple clothes worn by the common people. The contemporary Indian
textile not only reflects the splendid past but also cater to the requirements of the
Like India is famous for its vibrancy and colours so are its range of
apparel. Like the culture of India, Indian clothing is popular for it's for its
colourfulness and grace. India has been known to have wonderful dresses and
costumes. Though the majority of Indian women wear traditional costumes, outfits
for women such as sari bring out the essence of feminism. Clothes for men are
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suitable for the warm climate and comfort. The men in India can be found in more
conventional Western clothiniz. There are various materials used like cotton,
religion and climate. Traditional Indian clothing for women the sari or the salwar
kameez and also ghaghra cholis. For men, traditional clothes are the dhothi, lungi or
kurta. Mumbai is one of India's fashion capitals. In some village parts of India,
traditional clothing is still mostly worn. In Southern India the men wear long, white
sheets of cloth called dhothi Over the dhoti, men wear shirts, T-shirts, and other
outfits .Wornen wear sari, a long sheet of colourful cloth with patterns. This is
draped over a simple or fancy blouse. This is worn by young ladies and women.
Little girls wear a pavada .A pavada is a long skirt worn under a blouse. Both are
often gaily patterned. Indo-Western clothing is the fusion of western and sub
The textile and garment industry fulfils a pivotal role in the Indian
economy. It is a major foreign exchange earner and, after agriculture, it is the largest
accounted for about 14% of industrial production and 16% of export earnings. The
industry covers a wide range of activities. These include the production of natural
raw materials such as cotton, jute, silk and wool, as well as synthetic filament and
The Indian textile industry accounts for about 23% of the world's spindle
capacity, making it the second highest after China, and around 6% of global rotor
capacity. Also, it has the highest loom capacity including hand looms with a 61%
share. India accounts for about 12% of the world's production of textile fibres and
yarns. This includes jute, of which it is the largest producer. The country is the
second largest producer of silk and cellulose fibre and yarn, and the fifth largest
The global textiles and apparel trade is estimated at US 450 billion and is
expected to touch US$ 700 billion by 2010. Of the US 52-billion Indian textile and
apparel industry, the domestic industry accounts for US$ 30 billion and the
remaining is accounted for by exports. Total exports increased to US$ 21.46 billion
percent share in the world's export of textiles and 3 percent in clothing exports
(trade India.com2008)3.
As per the latest figures available with the Ministry of Textiles, India
exported textiles worth US$ 10.518 billion during the first six months (April-
last year. Indian textiles, handlooms and handicrafts are exported to more than a 100
countries. As per the latest figures available with the Ministry of Textiles, during the
of Indian textiles with a 20.31 percent share. The US is followed by UAE with 8.27
percent share, UK with 7.53 percent, Germany with 6.11 per cent and France with
3.80 percent. The other countries that make the top 10 include Italy (3.76 per cent),
China
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(2.54 per cent). Spain (2.76 per cent). Bangladesh (2.45 per cent) and Netherlands
(2.44 per cent).
Readymade garments (RMG) are the largest export segment, accounting for
almost 45 percent of total textile exports and 8.2 percent of India's total exports. This
Arrangement (MFA) in January 2005. RMG exports from India were worth USS
8.87 billion in 2007-08. During April-May 2008-09 RMG exports were worth US$
(www.ibef.org2008)4.
carpets. Exports of carpets have increased from US$ 654.32 million in 2004-05 to
(including silk carpets) stood at US$ 152.92 million, an increase of nearly 25 per
has increased by almost 47 percent to US$ 604 million in April-May 2008-09 from
US$ 410 million in the corresponding period last fiscal. During April-May 2008-09,
exports of silk increased by 16.65 percent to US$ 117.35 million, export of wool
increased by 28.67 percent to US$ 75 million and exports of jute increased by 35.31
accounts for about 10 percent of the US$ 37 billion Indian retail market, and with
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the continuing boom in consumer demand, is estimated to grow at the rate of 12-15
Kearney's 'Retail Apparel Index' ranks India as the third most attractive market for
apparel retail
the globe.
• India holds around 25 percent share in the cotton yarn industry across
the globe.
43 percent share in the apparel market of the country. USA holds 10 percent and
32.6 percent shares in Indian textiles and apparel. Few other global countries apart
from USA and Europe, where India has a marked presence include UAE, Saudi
Arabia, Canada, Bangladesh, China, Turkey and Japan Ready made garments
accounts for 45 percent share holding in the total textile exports and 8.2 percent in
2004-05 to USD 930.69 million in the year 2006-07. India holds 36 percent share in
the global textile market as has been estimated during April-October 2007 The
technical textiles market in India is assumed to touch USD 10.63 billion by 2007-08
from USD 5.09 billion during 2005-06, which is approximately double. It is also
assumed to touch USD 19.76 billion by the year 2014-15 By 2010, India is expected
to double its share in the international technical textile market The entire sector of
Textile exports targeted to reach $50 billion by 2010, $25 billion of which
will go to the US. Other markets include UAE, UK, Germany, France, Italy, Russia,
Canada, Bangladesh, and Japan. The name of these countries with their background
can give thousands of insights to a thinking mind. The slant cut that will be
producing a readyrnade garment will sell at a price of 600 Indian rupees, making the
fibre arrangement (MFA) since 1st January, 2005 under the World Trade
Organization (WTO), Agreement on Textiles and Clothing, the market has become
material will be possible with the traditional inputs so far available with the Indian
market.
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growing rate of nearly two times of textiles for clothing applications and now
account for more than half of the total textile output. The processes in making
The application that comes under technical textiles are filtration, bed sheets
materials and thermal protection, adhesive tape, seatbelts, and other specialized
is one of the largest producers of cotton yarn around the globe, and
also there are good resources of fibres like polyester, silk, viscose etc.
has a huge advantage due to lower wage rates. Because of low labour
• The apparel industry is the largest foreign exchange earning sector,
Massive Fragmentation
industry structure, which is led by small scale companies. Despite the government
policies, which made this deformation, have been gradually removed now, but their
impact will be seen for some time more. Since most of the companies are small in
size, the examples of industry leadership are very few, which can be inspirational
companies do not have the fiscal resources to enhance technology or invest in the
The uneven supply base also leads barriers in attaining integration between
the links in supply chain. This issue creates uncontrollable, unreliable and
inconsistent performance.
The reservation of production tor very small companies that was imposed
with an intention to help out small scale companies across the country, led to
most of the sectors now have been de-reserved, and major entrepreneurs and
Secondly, the foreign investment was kept out of textile and apparel
bringing down import duties on capital equipment, offering foreign investors to set
than textile products; it can certainly provide a base for textiles and apparel
companies.
still sustains like various taxes and excise imbalances due to diversification into 35
place of all other tax diversifications, which will clear these imbalances once it is
imposed fully.
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Labour Laws
trades, with companies having not more than ideal model to follow a 'hire and fire'
policy. Even the companies have often broken their business down into small units
to avoid any trouble created by labour unionization. In past few years, there has been
movement gradually towards reforming labour laws, and it is anticipated that this
There are some high-level disadvantages for India due to its geographic
location. For the foreign companies, it has a global logistics disadvantage due the
shipping cost is higher and also takes much more time comparing to some other
manufacturing countries like Mexico, Turkey, China etc. The inbound freight traffic
has been also low, which affects cost of shipping - though, movement of containers
access to the other major markets. This issue made others to impose quota and duty,
over the past few years. Growing number of working women, changing fashion
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trends, rising level of information and media exposure, and entry of large number of
Rreign brands have given the industry a new dimension. As a result, various
industry majors operating in men apparel segment have now started to diversify
themselves into women wear in order to exploit the highly lucrative market that was
estimated at more than Rs. 37,000 Crore in 2007. The market, in the past five years,
projected to rise at a rate close to 25% and surpass Rs. 18,000 Crore by 2010.
Premium segment apparel is forecasted to account for close to 20% of total women
apparel market by 2010. Western wear, along with lingerie, will emerge as the fastest
growing segment. Organised players are expected to account for over 40% lingerie
market by 2009. Demand for textile and apparel machinery is anticipated to increase
at more than 100% till 2011. Demand for ready-made garments in rural market is
The menswear market includes all garments made for men and boys. It
includes both outer and under garments, but excludes infants wear, which is defined
as clothing for children under two years of age. The market comprises the coats,
suits, trousers, shirts (including T-shirts, jumpers, etc.) and underwear sectors. The
market's value is calculated at retail selling price (RSP), and includes all taxes and
levies.
Men's apparel industry will increase at a growth rate of 14.86% during the
two-year period from 2008 to 2010. The demand for ready-made garments in rural
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India will surge at a rate of 16.50%per annum to reach Rs. 42918 Crore by
2010.lncreasing at a growth rate of 24%, branded apparel industry for men will cross
Rs. 25,000 Crore by 2010. Per capita GDP spending on apparel increased to 5.8% in
2006 from 4.9% in 2003. In 2007. men's apparel industry was mainly dominated by
shirts (in value terms) accounting for 36.5% of total mens segment. The Indian
from 2007.
market are fast changing. The market for kids' apparel in India exceeds
Rs. 13000 Crore, of which around Rs. 3000 Crore is constituted by branded kids'
wear. The kids' wear market is growing at the rate of 10% per annum, which makes
Some major changes in trends are taking place in the market for kids'
apparel. One of the important changes is the increasing preference for branded
apparel. This shift is taking place on account of changes such as a rise in the
disposable income of the people and the increasing influence of foreign culture. The
other important change that is taking place in this area is the emergence of kids as an
independent buyer group. Influenced by mass media and peer pressure, today's kids
are more informed and self-conscious. According to a recent study conducted, out of
the total Indian population, 30% are under the age of 12. The market for Kids
apparel in India exceeds Rs. 14,000 crore, of which Rs. 3,000 crore is constituted by
branded kids wear. It's growing at 20% per aimum which makes it one of the fastest
Fabric on line2008
2. India crafts.com2008
6. Market moniter.com2009
7. Fibre to fashion.com2009