India's role in the global textile economy is increasing gradually because of consumer need, new researches, raw material availability and the other factors like 1. Production of wide range of natural fibres such as cotton, jute, silk, wool to manmade fibres like polyester, viscose, acrylic and multiple blends is scattering day by day. 2. Textile industry is playing key role in economy of the country that contributed 4 percent of GDP in 2008-2009 by providing the direct employment to 35 million people (estimated).


India has certain advantages than other countries regarding:

Abundant and low-cost availability of raw materials

  • A variety of raw materials - cotton, silk, jute and wool - are available in the country.

  • This inherent strength in availability of raw materials prevents any supply-side shocks.

  • In terms of cost, India has an advantage over comparative countries.

Labour advantage

  1. India has abundant availability of manpower with skill sets across all activities of the textiles value chain

  2. India's cost advantage over comparative countries

Growing domestic demand

  • Disposable incomes have been rising steadily in India.

  • The consuming class is expected to constitute 80 per cent of the population by 2010.

  • Change in consumer mindset has led to an increasing spend on consumption, including textiles.

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About the Author:

Mrs. Ayodya Kavitha and N. Hari Prasad are associated with the University College of Technology at the Osmania University