Since you deal into colors and textile printing, you are in some way connected to the textile industry. Please share with us your overview about the Indian as well as Global Textile industry.
Colour is an integral part of the textile industry. The Indian textile industry is one of the leading industries in the world. Predominantly fragmented, the industry experienced changes post liberalization of the Indian economy in 1991. Currently the Indian textile industry boasts stable growth and experiences new technological innovations every year. The Indian textile industry plays a vital role in contributing growth to the economy. As of March 2012, India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry contributes nearly 14% of the total industrial production of the country and contributes about 3% to the GDP of the country.
The Indian textile industry is also the largest in terms of employment generation where it generates employment for more than 35 million people. The industry opens new job opportunities for other ancillary sectors as well.
In the last 10 years the industry experienced tremendous changes- especially due to the abolition of the quota system in 1995 and globalization. The abolition of the quota system, allowed many buying houses to set up their offices in India for sourcing textile materials- mainly garments and home textile products. Due to severe cotton price volatility in 2011, the entire textile industry experienced a slack post which RBI undertook a few actions in favor of the industry. The Finance Ministry allowed restructuring of loans worth Rs. 35,000 crore, which amounts to over 20% of the banks’ exposure to the textile sector. This move largely benefitted mills in Tamil Nadu and Gujarat.
The suspension of Technology Upgradation Fund Scheme (TUFS) delayed new projects in the textile industry. This was in spite of the interest and custom duty subsidies given by the government. However, the Ministry of Textile (MoT) urged and appealed the Finance Ministry to continue TUFS, which might see a commencement soon. The growth of the textile industry is also affected by state run policies that are not uniform across the country. The Indian textile industry has not been able to bank on the short comings like- poor and uncertain qualities, rising costs and lack of deliveries from other competitive countries.
Published on: 11/07/2012
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.