Textile industry in india

The Indian textile industry has a significant presence in the economy as well as in the international textile economy.

Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings.

It contributes 20 percent of industrial production, 9 percent of excise collections, 18 percent of employment in the industrial sector, nearly 20 percent to the country’s total export earning and 4 percent to the Gross Domestic Product.

Introduction :

 

The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave‘.

 The history of textile is almost as old as that of human civilization.

In India the culture of silk was introduced in 400AD . modern textile industry took birth in India in the early nineteenth century

India has been well known for her textile goods since very ancient times.

The modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818.

The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant .

The majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets.

History of textile industry :

Wool producing areas

Silk producing areas

Cotton producing areas

India is the second largest producer of fiber in the world and the major fiber produced is cotton. Other fibers produced in India include silk, jute, wool, and man-made fibers. 60% of the Indian textile Industry is cotton based.The strong domestic demand and the revival of the Economic markets by 2009 has led to huge growth of the Indian textile industry. In December 2010, the domestic cotton price was up by 50% as compared to the December 2009 prices. The causes behind high cotton price are due to the floods in Pakistan and China. India projected a high production of textile (325 lakh bales for 2010 -11).There has been increase in India's share of global textile trading to seven percent in five years. The rising prices are the major concern of the domestic producers of the country.

Production :

Man Made Fibers: These includes manufacturing of clothes using fiber or filament synthetic yarns. This sector has a share of 62% of the India's total production and provides employment to about 4.8 million people.

The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It provides employment to huge amount of people but its productions and employment is seasonal depending upon the seasonal nature of the production.

The Handloom Sector: Its market share is 13 % of the total cloth produced in India.

The Woolen Sector: India is the 7th largest producer of the wool in the world. India also produces 1.8% of the world's total wool.

The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern states of our country like Assam, West Bengal. Indian is 3rd largest producer of jute in the world.

The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world. India produces world's 18% total silk, Mulberry. Eri, Tasar, and Muga are the 3 main types of the silk produced in the country.It is a labor-intensive sector.

Conti…..

The textile sector in India is one of the worlds largest. The textile industry today is divided into three segments:

1. Cotton Textiles2. Synthetic Textiles3. Other like Wool, Jute, Silk etc.

All segments have their own place but even today cotton textiles continue to dominate with 73% share. The structure of cotton textile industry is very complex with co-existence of oldest technologies of hand spinning and hand weaving with the most sophisticated automatic spindles and loom.

STRUCTURE OF INDIA'S TEXTILE INDUSTRY :

Textile economy to grow to $ 85 bn. by 2010.

Creation of 12 million new jobs in Textile Sector.

To increase India’s share in world trade to 6% by 2010. 

Achieve export value of $ 40 Billion by 2010.

Modernization and consolidation for creating a globally competitive industry.

Vision India 2010 for Textiles :

Investment is the key for Indian textiles to make rapid strides. The Vision Statement prepared by the Indian Cotton Mills federation has projected that the industry has the potential to reach a size of $85 billion by 2010 from the current level of $ 36 billion. Further, the vision statement has estimated that textile exports could touch $40 billion by 2010 from $ 11 billion in 2002. In the process, India’s share in the global textile and clothing trade is expected to double from three percent in 2002 to six percent by 2010.

To reach these ambitious target, it is estimated that new investment to the tune of Rs.1, 40,000 crores will be needed in the next five years. After analyzing the capacity and technology levels in various segments of textile Industry and the need for modernization, funds required for various segments have been below.

INVESTMENT IN TEXTILE INDUSTRY

Table :

Indian textile industry has several Strengths :♦ Abundant Raw Material Availability♦ Low Cost Skilled Labor♦ Presence across the value-chain♦ Growing Domestic Market

Indian textile industry has several Weaknesses :♦ Fragmented industry ♦ Effect of Historical Government Policies♦ Lower Productivity and Cost Competitiveness♦ Technological Obsolescence

Indian textile industry has several Opportunities :♦ Post 2005 challenges♦ Research and Development and Product Development

Indian textile industry has several Threats♦ Competition in Domestic Market ♦ Ecological and Social Awareness♦ Regional alliances

SWOT ANALYSIS OF INDIAN TEXTILE INDUSTRY :

The cotton textile industry is reeling under manifold problems. The major problems are the following:

1. Sickness2. Obsolescence3. Government Regulations4. Low Yield and Fluctuation of Cotton Output5. Competition from Man-made Fibers6. Competition from other Countries7. Labor Problems8. Accumulation of Stock9. Miscellaneous

PROBLEMs FACED BY THE TEXTILE INDUSTRY IN INDIA :

The Indian textile industry is currently one of the largest and most important sector in the economy in terms of output foreign exchange earnings and employment in India.

The Textile industry has the potential to scale new height in the globalized economy.

The industry is facing numerous problems and among them the most important once are those of liquidity for many organized sector units, demand recession and insufficient price realization.

The long-range problems include the need for sufficient modernization and restructuring of the entire industry to cater more effectively to the demands of the domestic and foreign markets for textiles as per the needs of today and tomorrow.

CONCLUSION: