The textile and apparels sector in India is a diverseand heterogeneous industry, which covers a wide variety of products from hi-tech synthetic and wool fibres to yarns to fabrics to apparels, cotton fibresto yarns to fabrics to home textiles to high fashion apparels (knitted andwoven). This diversity of end products corresponds to a multitude of industrial processes, enterprises or market structures.


The Indian textile and apparelsindustry is in a stronger position now than it was in the last six decades. Theindustry, which was growing at 3: 4 percent during the last six decades, hasnow accelerated to an annual growth rate of 9: 10 percent. There is a sense ofoptimism in the industry and textile and apparels sector has now become asunrise sector.


The catalysts, which have placed the industry on thistrajectory of exponential growth are a buoyant domestic economy, a substantialincrease in cotton production, the conducive policy environment provided by the Government, and the expiration of the Multi Fibre Agreement (MFA) on 31 December,2004 and implementation of Agreement on Textiles and Clothing (ATC).


The buoyant Indian economy, growing at the rate of 8percent, has resulted in higher disposable income levels. The disposable incomeof Indian consumers has increased steadily. The proportion of the majorconsuming class (population that has an annual income of more than US$ 2000)has risen from 20 percent in 1995-96 to 28 percent in 2001-02. This is expectedto move up to 35 percent by 2005-06, and to 48 percent by 2009-10. Thistranslates into a growth of 9.3 percent over the next 8 years, and will resultin higher spending capacity, manifesting itself in the greater consumption oftextiles and apparels.


The Indian textile and apparels industry consumes a diverserange of fibres and yarn, but is predominantly cotton based. A significantincrease in cotton production during the last two: three years has increasedthe availability of raw cotton to thedomestic textiles and apparels industry at competitive prices, providing it with a competitive edge in the global market. The Government has also provided industry a conducive policy environment and initiated schemes, which have facilitatedthe growth of the industry. The Technology Mission on Cotton has increasedcotton production and reduced contamination levels. The Technology UpgradationFund Scheme (TUFS) has facilitated the installation of the state-of-the-art /near state-of-the-art technology/machinery at competitive capital cost. Therationalization of fiscal duties has provided a level playing field to allsegments, resulting in the holistic growth of the industry. Besides thegovernments permission to allow import of a number of textile and apparelsresources in terms of trimmings, embellishments, consumables and accessories,fabrics, linings/interlinings, etc. has made the apparels export industry inIndia much more competitive than ever before.


Not only this, the government, of late has been giving a lotof attention to strengthen infrastructure like roads, ports, power, water,telecommunications, etc. to supplement the efforts put in by the Indian textileand apparels industry to become a surrise industry.


To provide Indian consumers with world-class quality intextile and apparels and retail services, thegovernment has recently allowed single-brand overseas retailers to set upretail shops in India. The multi-brand overseasretailers/super markets/investors are already in India to conduct wholesalebusiness to feed existing retailers with quality products.


Quotas or quantitative restrictions imposed by developednations, which restrained the export growth of the Indian textiles and apparelsindustry for over four decades, were eliminated with effect from 01 January2005. This has unshackled Indian textiles and apparels exports, and this isevident from the growth registered in the quota markets. Apparels exports tothe USA during 2005 and 2006 increased by 34.2 and 7.08 percent respectively,while textiles exports during 2006 to the US showed and impressive 12.42 percent growth. Similarly, in Europe, apparelsexports increased by 30.6 and 17.50 % respectively in 2005 and 2006, whiletextile exports registered 2.2 and 3.5 percent growth in the similar periodrespectively. The increasing trends in exports is expected to continue in theyears to come.


If we look at the US and EU import statistics for apparelsalone, we find that these major global players are not inclined to sourceexclusively from China and India isconsidered as the second most preferred destination for major global retailersdue to its strength of vertical and horizontal integration.

The Indian government has always and is continuing toconsider the role of textiles and apparels manufacturing units in India as verycritical in achieving the objectives of faster and more inclusive growth, andhas laid emphasis on policies aimed at creating an environment in which entrepreneurship canflourish.

The textiles and apparelsindustry is targeted to grow at the rate of 16 percent in value terms to reachthe level of US$ 115 billion (exports US$ 55 billion; domestic market US$ 60billion) by 2012, while the fabric production is expected to grow at the rateof 12 percent in volume terms. Apparels alone are expected to grow at the rateof 16 percent in volume terms and 21 percent in value terms, while exports areexpected to grow at the rate of 22 percent in value terms, more info on http://www.textiletreasure.com



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