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Textile Industry in India

Textile Industry in India is the oldest and one of the most promising industries in terms of its contribution to the overall GDP of the country. Before the liberalization of economy in India during 1991, textile industry was totally unorganized. But with the easement of the economy has definitely given a push to the Indian textile market that has now become one of the largest in the world. Textile industry in India contributes close to 4 per cent of the total GDP, Gross Domestic Product. It is also a major contributor in industrial production, which is 14% and also the country's total export earnings that stands at 13%. Textile industry in India at present stands at US$ 52 billion and it is expected that it will reach to US$ 115 billion by 2012. And if we talk about the domestic Indian textile market then the present figures are US$ 34.6 billion that will go up to US$ 60 billion by 2012. Moreover the India's textile export is also increasing and there is seen 15 percent overall growth here.

Textile Industry In India Now if we talk about cotton in the Indian textile market and in the world trade, then cotton yarn's share from India is 25%. India is the second largest producer of cotton yarns and textiles and the third largest producer of cotton. India is also the largest consumer of cotton in the entire world and second largest in cotton's production, China being the first. Also the loomage (including handloom) in textile industry in India is the largest in the world and India contributes nearly 61% of the total world's loomage.

The ever growing retailing sector and purchasing power of Indian consumer is also markedly affecting the textile industry in India. The lifestyle of middle class consumer is changing dramatically leading to the growth of Indian textile market. In earlier times consumers used to buy bed spreads , bed sheets and other textile furnishing products just during the festive season but now the buying trends are changing. Consumer needs home that is well furnished and depicts the modern decor. The global textile consumption has also increased and each year it is expected to grow by 15%. After China it is the India which is the biggest player of textile industry and global demand for the home textile furnishings has led to the investments in the textile industry in India.

After textile it is the apparel industry that is the second largest industry and retail sector in India. At present the domestic apparel industry is at US$ 2.7 billion and it is expected to grow 5-7 per cent by the end of 2010.

India Textile Industry Facts

Revival of Khadi: Major Step to Improve Textile Industry in India

Khadi was extensively used in India and considered as the Indian fiber. But with the many other types of clothes and fibers, the Khadi was loosing its importance but now Government is taking steps to revive the Khadi. US$ 150 million offer has been made by the Asian Development Bank (ADB) for the revival of Khadi. Also the Japan Special Fund through ADB will provide US$ 2 million grant to India for the growth of Khadi industry. This will generate employment particularly for women and minorities in rural sector. This is the one step to further boost the Indian textile market at global level.

Steps Taken by Government to Boost Textile Industry in India

Strength of Textile Industry in India

Weakness of Indian Textile Market


But in spite of these weaknesses and hurdles in textile industries in India it is expected that this sector will touch new heights and continue to grow at the expected speed leading the economic growth and overall development of the nation.




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