• With the active help from the Indian Government, India CAN recover lost ground as a world supplier of high quality textiles.

2.5.3 Indian Textile Industry and its Global Position

• The Indian Textile Industry is the second largest in the world.
• It has the largest cotton acreage (9 million hectares).
• It is the third largest cotton producer.
• It ranks fourth in terms of staple fibre production, and sixth in filament yarn production.
• India accounts for (circa) 25% of the Global trade in cotton yarn.
• It is the largest producer of Jute, the second largest producer of silk and the 5^th largest producer of synthetic fibre / yarn. (Ref 6).

2.5.4. The Indian Textile Industry within the Indian Economy

• The Indian Textile and Apparel industry :
• contributes to circa 3.6% of Indias gross domestic product
• accounts for 25% of Indias exports.(Ref 7).
• The Textile Industry accounts for about 20% of industrial production.
• The Textile Industry employs over 15 million people.
• Textiles and Garment exports account for 39% of Indias total exports.
• Globalisation has brought opportunities for Indian Textiles.
• But Globalisation also brings threats which have to be addressed (particularly from cheap imported fabrics).
• If the WTO means better distribution of world trade, it will not be free for all and only the fittest will survive.
• WTO benefits for Indian Textiles will also apply to other developing countries.
• The Indian Textile Industry has great potential, but great challenges ahead.
• It must maximise its strengths and minimise its weaknesses.

Table 2: Strengths and Weaknesses (Indian Textile Industry) (Ref 2)