TEXTILE INDUSTRIES

INTRODUCTION
India’s textiles sector is one of the oldest industries in the
Indian economy, dating back to several centuries. The industry
is extremely varied, with hand-spun and hand-woven textiles
sectors at one end of the spectrum, with the capital-intensive
sophisticated mills sector at the other end. The fundamental
strength of the textile industry in India is its strong production
base of a wide range of fibre from natural fibres like cotton, jute,
silk and wool, to synthetic and man-made fibres like polyester,
viscose, nylon and acrylic.

The decentralised power looms, hosiery and knitting sector

form the largest component of the textiles sector. The close
linkage of textiles industry to agriculture (for raw materials such
as cotton) and the ancient culture and traditions of the country
in terms of textiles makes it unique in comparison to other
industries in the country. India’s textiles industry has a capacity
to produce a wide variety of products suitable for different
market segments, both within India and across the world.

In order to attract private equity and employee more people,

the government introduced various schemes such as the
Scheme for Integrated Textile Parks (SITP), Technology
Upgradation Fund Scheme (TUFS) and Mega Integrated Textile
Region and Apparel (MITRA) Park scheme.

HISTORY

The textile industry of India, which is more than 5000 years old,
has undergone significant developments starting from its
modest beginnings as handlooms in villages to large-scale
modern-day textile mills. From the era of ‘Cholas’, ‘Seljuks’, and
‘Safavids’. Till now, Indian Textile Industry has come a long
way. India’s textiles were so central to its identity abroad that in
ancient Greece and Babylon the very name ‘India’ was
shorthand for ‘cotton’. The development of the textile industry
in India can be classified broadly into three distinct stages – The
pre-colonial period, the Colonial period and the post-
independence period. With the entry of the East India
Company, the production and trade of Indian textiles and
fabrics in the medieval period were further intensified. Artisans
developed their own styles of treating and decorating the
textiles with locally available raw materials in each area. During
the Colonial Period, a large variety of Indian Calico and other
types of cotton production made inroads into the British Empire
and the sheer variety of production styles and the skills of the
Indian artisans accumulated through generations made the
products manufactured in India far superior in quality and
range than the textiles produced in Europe. However, the
situation began to change after the colonial period. As more
affordable clothes made of machine-spun yarn flooded not only
European but also Indian markets, the traditional hand-spun
yarn and textiles faced stiff competition, which became even
more pronounced with the use of chemical dyes in the West.
After the Industrial Revolution began in England, it removed all
import duties on British goods in the Indian market, while the
English East India Company imposed heavy import duties on
Indian clothes in the British markets. The Indian textile mills
were not able to withstand the competition from machine-
made goods produced in Britain, and gradually this led to the
decline of the Indian textile industry during the colonial period.
With the singular agenda of maximizing profits, the textile
industry in India like all other industries under the colonial
regime suffered major losses. It is therefore very pertinent to
analyse the situation with the independence movement of
India and the boycott of British mill-made clothes and the
promotion of khadi became the identity of Swaraj or the self-
rule movement under the father of the nation Mahatma
Gandhi.

GROWTH OF INDIAN TEXTILE INDUSTRIES POST

INDEPENDENCE

The British Rule in India saw the imposition of various levies and
taxes with import and export barriers to the already fledgling
textile industry in India. Britain had already started exporting
mill-made fabrics and yarns to India in the 1780s. The flooding of
low-cost fabrics and textiles in India from Britain severely
hampered and damaged the development of the indigenous
textile industry. This situation created the cloth crisis in India
during British rule. Freedom led to increase factory production
to clothe India’s vast population, the government set up the All-
India Handloom Board in 1952 to nurture hand-weaving and
other textile crafts. In 1961, the National Institute of Design was
established, and designers began to play a key role in the
modernising process. The Government of Indiamplemented a
slew of measures and initiatives to revive the textile industry.
The Indian textiles industry is now a well-established one with
significant attributes and a lustrous future. India’s textile
industry is also the largest in the country in terms of
employment generation. The country is the second biggest
textiles manufacturer worldwide, right after China. The Indian
textile industry is an integral part of the overall manufacturing
sector of the country and is a major contributor to the country’s
economy. It not only generates jobs in its own industry but also
opens up scope for other ancillary sectors.

MAJOR TEXTILE INDUSTRIES IN INDIA

SUTLEJ TEXTILES

Sutlej Textiles & Industries Ltd (STIL) is a leading producer of value-added

yarns in India. Since inception. the company has been committed to achieving
high growth through development of niche products to meet the increasingly
sophisticated demands of the Industry. Today, it has the largest product
portfolio of spun-dyed, cotton blended and cotton melange dyed yarns.

ARVIND LIMITED

Arvind Limited (formerly Arvind Mills) is an Indian textile manufacturer and

the flagship company of the Lalbhai Group. The company
manufactures cotton shirting, denim, knits and bottomweight (khaki) fabrics. It
had also recently ventured into technical textiles with its Advanced Materials
Division in 2011.[3] The company is India's largest denim manufacturer.[4]
RAYMOND TEXTILES

Raymond is a diversified group with majority business interests in

Textile & Apparel sectors and a presence across varying segments such
as Consumer Care, Realty and Engineering in national and international
markets. Raymond Limited was first incorporated as the Raymond Woolen
Mill in 1925 near Thane Creek. Ever since then they have been analogous with
class, elegance and individuality which is evident in their men's fashion.

VARDHAMAN TEXTILES

Vardhman Group is a textile group based in Ludhiana, Punjab, India, that

was established in 1965. The group is engaged in manufacturing and
trading in Yarn and Processed Fabric, Sewing Thread, Acrylic fibre and
Alloy steel. Vardhman group was incorporated in 1962 as Vardhman
Spinning & General Mills (VSGML). The company was promoted by VS
Oswal and RC Oswal initially and is now headed by S. P. Oswal Jain.[1] The
total number of employees in the company as of April 2011 is 23,000.

COMPONENTS

Fibers, yarns, fabric construction, finishes and design are components of a

textile product. The selection of specific components varies with the
intended use, therefore the fibers, yarns, and fabric manufacturing systems
are selected with consideration of the required performance.

STRUCTURE OF INTEXTILE INDUSTRIES

There exists a strong complementary relationship between the organized

and unorganized sectors of textile industry. The organized sector is the sole
producer of yarn which is used by both organized as well as unorganized
sector. Organized sector is also named as the modern sector because it is
the hub of technology for textile industry as the technological practices
employed in this sector enable the spinning mills to produce the yarn cost
effectively and helps the unorganized sector by making yarn available to
them at competitive prices. Unorganized sector is also termed as the
traditional sector because of use of age-old traditional production
practices which are now considered obsolete. At the same time, the
unorganized sector employs the largest chunk of labour force and has
been an important absorber of the surplus labour force from the labour
market. In fact, the unorganized textile sector is the second largest
employer after agriculture in Indian economy. Unorganized textile sector
has also become a dominant contributor to the total textile output.

MARKET SIZE
The textiles and apparel industry contributes 2.3% to the country’s GDP, 13% to
industrial production and 12% to exports. The textile industry in India is
predicted to double its contribution to the GDP, rising from 2.3% to
approximately 5% by the end of this decade.

India’s textiles industry has around 4.5 crore employed workers including 35.22
lakh handloom workers across the country.

MARKET SHARE

market
company share
Arvind limited 8008.51
Sutlej textiles 915.8
Bombay deying 3387.42
Vardhaman
textiles 13284
kpr 28841
Reymond 3361
others 42202.27

GOVERNMENT INITIATIVES

SAMARTH

Samarth (Scheme For Capacity Building In Textile Sector) is a flagship

skill development scheme approved in continuation to the Integrated Skill
Development Scheme for 12th FYP, Cabinet Committee of Economic Affairs.
The industry is facing shortage of skilled workers and provides many
opportunities for unemployed youth in the country who are trained in the
sector. To address the issue, Central government of India has
launched Scheme for Capacity Building in Textile Sector (SCBTS) and
named it SAMARTH Scheme. The objectives of the scheme are to provide
demand-driven, placement oriented skilling programme to incentivize the
efforts of the industry in creating jobs in the organized textile and related
sectors to promote skilling and skill up-gradation in the traditional sectors
through respective sectoral divisions/organizations of Ministry of Textile;
and to provide livelihood to all sections of the society across the country. The
Scheme would target to train 10 lakh persons over a period of 3 years (2017-
20) with an estimated budget of 1300 crore and has invited the participation
of Textiles Industry/Associations registered under Central or State
Government/Chambers of Commerce of Central or State Government.

Other initiatives taken by the Government of India are:

• In July 2023, 43 new implementing partners were empanelled under the

SAMARTH scheme and an additional target of training around 75,000
beneficiaries has been allocated.

• The Indian government has come up with several export promotion

policies for the textile sector. It has also allowed 100% FDI in the sector
under the automatic route.
• In June 2023, the Government approved R&D projects worth US$ 7.4 million
(Rs. 61.09 crore) in the textile sector.

• In February 2023, the union government approved 1,000 acres for setting up a
textile park in Lucknow.

• Under the National Technical Textile Mission (NTTM), 74 research projects for
speciality fibre and technical textiles valued at US$ 28.27 million (Rs. 232 crore)
were approved. 31 new HSN codes have been developed in this space.

MAJOR TEXTILE HUBS IN INDIA

• NCR
• Gujarat
• Maharashtra
• Uttar Pradesh
• West Bengal
• Tamil Nadu
• Madhya Pradesh
• Rajasthan

EXPORTS

year exports(billion$)
fy14 37.5
fy15 37.7
fy16 36.7
fy17 36.5
fy18 36.7
fy19 37.5
fy20 34.2
fy21 30.9
fy22 44.4
fy23 34.4

IMPORTS

imports(billion
year rs)
fy14 91.21
fy15 103.4
fy16 112.2
fy17 100.7
fy18 118.4
fy19 133.05
fy20 135.99
fy21 110.92
fy22 154
fy23 210.11

GDP CONTRIBUTUION

year gdp(%)
fy14 2.33
fy15 2.22
fy16 2.3
fy17 2
fy18 2
fy19 1.94
fy20 2.3
fy21 2
fy22 2
fy23 2.3

MARKET SIZE

market
year size(billon$)
fy14 99
fy15 108.5
fy16 137
fy17 150
fy18 140.4
fy19 150
fy20 223
 fy21 75
fy22 165
fy23 165

LATEST TRENDS

India’s trade of technical textile products has been growing strongly and the country has
been a net exporter. India’s exports of technical textile products grew from $2.21 Bn in
2020-21 to $2.85 Bn in 2021-22, registering a growth rate of 28.4% (YoY).

1. India’s Textiles Exports were highest ever in FY 2021-22, crossing $44 Bn

2. India is a largest cotton producer in the world and has the highest area under
cotton cultivation.
3. india is also the 2nd largest consumer of cotton in the world
4. The textile industry continues to be the second-largest employment generating
sector in India.
5. India enjoys a comparative advantage in terms of skilled manpower and in cost of
production relative to major tetile producers
6. Minister of textiles, commerce and industry, consumer affairs and food and oublic
distribution, mr piyus goyal stated that the indian government wants to establish 75
textile hubs in the country
7. 1,83,844 beneficiaries trained across 1880 centers under SAMARTH.
8. Total FDI inflows in the textile sector stood at US$4.34billion between 2020-2023
9. In june,2023 the government approved R&D projects worth US$7.4 million in textile
sector
10. Huge funds in schemes have been released by the government in the union budget
of 2023-2024 to encourage more private equity investments and provide
employment.
11. Reliance Foundation launched the first 'Swadesh' handicrafts store in
Hyderabad, aimed at supporting and promoting Indian craftwork.
12. Cott-Ally mobile app has been developed for farmers to increase awareness
about MSP rates, nearest procurement centers, payment tracking, best farm
practices etc.

13. Vardhman has established Vardhman ReNova, a cotton recycling facility with
a six TPD production capacity.
14. , Tamil Nadu Chief Minister Mr. M. K. Stalin announced the establishment of a
"Textile City" in Chennai as part of Tamil Nadu's strategy to become a major
participant in the global textile industry.
15. Amazon India signed a MoU with the Manipur Handloom & Handicrafts
Development Corporation Limited (MHHDCL), a Government of Manipur
entity, to encourage the development of weavers and artisans throughout the
state.
16. Home textile companies in India are also leveraging strategic partnerships to
strengthen their business operations and foothold in the country.

17. Welspun India collaborated with DuPont Biomaterials to introduce a home

textile range and strengthen the company’s sustainable textiles business.
 18. The textile ministry has selected 61 companies, including Arvind Limited to
enjoy benefits under its production-linked incentive (PLI) scheme for the
labour-intensive textiles and garment sector.
19. India’s textiles industry has around 4.5 crore employed workers
including 35.22 lakh handloom workers across the country.
20. Natural fibres are regarded as the backbone of the Indian textile
industry.

CONCLUSION

The textile industry is one of the largest contributors to India's economy, both in
terms of GDP and employment. It provides livelihoods to millions of people,
especially in rural areas where textile production is a major source of income. : India
is a major player in the global textile market, exporting a wide variety of textiles and
garments to countries all over the world. The country's rich tradition of craftsmanship
and expertise in textile production make its products highly sought after
internationally. The Indian government has implemented various policies and
initiatives to support the growth of the textile industry, including financial incentives,
infrastructure development, and skill development programs. Despite its significant
contributions to the economy, the Indian textile industry faces several challenges
such as competition from other countries, outdated infrastructure, environmental
concerns, and compliance issues related to labor laws and regulations. The industry
has been gradually embracing technological advancements to improve efficiency,
quality, and sustainability. Automation, digitalization, and innovation in materials and
processes are becoming increasingly important for the industry's growth and
competitiveness.

Overall, the Indian textile industry continues to play a crucial role in the country's
economic development, cultural heritage, and social fabric, with efforts ongoing to
address challenges and capitalize on opportunities for growth and innovation.

BIBILOGRAPHY

• Wikipedia.com
• Ibef.org
• Statista.com