The global textile and apparel industry is worth over US$ 4,395 billion, with clothing accounting for 60 per cent of the market and apparel, the balance 40 per cent. Global trade in this industry is now at US$ 350 billion and is expected to be in the range of US$ 600 billion by 2010 and US$ 800 billion by 2014.
The Indian textile industry is one of the oldest and most significant industries in the country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings. In fact, it is the largest foreign exchange earning sector of India. Moreover, it provides employment to over 35 million persons.
The Indian textile industry is in a stronger position now than it was in the last six decades. The industry which was growing at 3 - 4 percent during the last six decades has now accelerated to an annual growth rate of 9 - 10 percent. There is a sense of optimism in the industry and textiles sector has now become a 'sunrise' sector. Considering the domestic availability of cloth, the per capita availability of cloth is projected at 62.23 sq. mtrs. by the end of the Eleventh Plan period, as against 39.17 sq. mtrs. in 2006-07, registering an annual rate of growth of 9.70 percent per annum. The per capita availability is estimated based on the projected population and expected export trend.
At present, India ranks First in jute production (at 1,900 million kilograms), Second in silk production (at 15 million kilograms of raw silk), Second in cotton exports (at 2,000 million kilograms), Second in cotton production (at 2,700 million kilograms of cotton fibre), Fifth in man-made fibres (at 2,000 million kilograms) and ranks Eighth in the total production of wool (at 51 million kilograms) in the world.
- Strong and diverse raw material base.
- Vertical and horizontal integrated textile value chain.
- Strong presence in entire textile value chain from raw material to finished goods.
- Globally competitive spinning industry.
- Average cotton yarn spinning cost at US$ 2.5 per kg. Which is lower than all the countries including China.
- Low wages: rate at 0.75 US$ per operator hour as compared to US$ 1 of China and US$ 3 of Turkey.
- Unique strength in traditional handlooms and handicrafts.
- Flexible production system and Diverse design base.
The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by 2012. It is estimated that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period.
USA and European Union (EU) together are the major consumers of textiles. They accounted for nearly 64 per cent of clothing and 39 per cent of textile consumption.
India's textile exports have shot up from US$ 19.14 billion in 2006-07 to US$ 22.13 billion in 2007-08, registering a growth of over 15 per cent. Indian textiles are exported to more than 100 countries, with the US being the largest buyer. Ready Made Garments (RMG) are the largest export segment, accounting for almost 41 per cent of total textile exports. RMG exports from India were worth US$ 9.06 billion in 2007-08. During April 2008-February 2009, RMG exports were worth US$ 8.59 billion, an increase of 4.86 per cent over the corresponding period of 2007-08.
Apparel is the second largest retail category in India. The domestic apparel retailing industry is estimated to be round US$ 2.7 billion and in spite of recession is likely to grow at 5-7 per cent in 2009-10. The domestic organised garment retailing clocked a growth of 13-14 per cent for year ended March 2009.
The apparel sector has over 25,000 domestic manufacturers,48,000 fabricators and around 4,000 manufacturers/exporters. Over 80 per cent of the total units are small operations (less than 20 machines) and are either proprietorship or partnership firms. Tirupur in Tamil Nadu is the largest Knitted garments Cluster in India with over 3000 Knitted Garment exporters exporting over US 2.3 0 billion directly and indirectly. This cluster accounts for 90 per cent of the India's cotton knitwear exports.
The accessories market is pegged between US$ 298.6 million and US$ 597.3 million, which has been growing at 15 to 18 per cent. Within this, the branded accessories segment is growing at 25 per cent.
India Textiles Industry at a Glance
|ITEMS||UNITS||2003 - 04||2004 - 05||2005 - 06||2006 - 07||2007 - 08|
|Cotton/Man-made Fibre Textiles Mills||No||1787||1789||1780||1808||1773|
|Exclusive Weaving Mills(Non-SSI)||No||206||202||204||204||179|
|Powerloom Units||Lakh No||4.13||4.26||4.34||4.40||4.49|
|Rotors (SSI+Non-SSI)||Lakh No.||4.82||5.00||5.20||6.01||6.21|
|Looms(Organised sector)||Lakh No.||1.05||1.03||0.92||0.88||0.71|
|Man-made fibres||Million Kg.||1101||1189||1191||1663||1659|
|Man-made filaments||Million Kg.||1228||1337||1374||2053||2101|
|Worsted spindles(Woollen)||Thousand No.||604||604||604||604||604|
|Non-worsted spindles(Woollen)||Thousand No.||437||437||437||437||437|
|Production of Fibres|
|Raw cotton *||Lakh bales||179.00||243.00||241.00||280.00||315.00|
|Man-made fibres||Million Kg.||953||1023||968||1139||1244|
|Raw wool||Million Kg.||48.50||44.60||44.90||45.20||45.20|
|Raw silk||Million Kg.||15.74||16.50||17.31||18.48||18.31|
|Production of Yarn|
|Cotton yarn||Million Kg.||2121||2272||2521||2823||2948|
|Other spun yarn||Million Kg.||931||951||937||990||1055|
|Man-made filament yarn||Million Kg.||1118||1109||1179||1370||1509|
|Production of Fibres|
|100% Non-cotton (including Khadi,Wool & Silk)||Million sq.mtr.||18275||18691||19406||20269||21173|
|Per capita availability of cloth||Sq.mtr.||31.01||33.51||36.10||39.60||41.85|
|Production of Textile Machinery||Million US$||292.52||375.74||500.64||618.03||747.32|
(including Jute,Coir& Handicraft)
|Textile Imports||Million US$||2021||2336||2739||2839||3334|
Technical Textiles: Technical or functional textiles are those textiles that have some functional properties attached to it and are different from traditional textiles that are merely used for adoration. The technical textiles market which at present is around US$ 80.1 million and growing at a healthy pace of about 12 per cent, is expected to touch US$ 13.7 million by 2012-13.
Keeping this in mind, the government has designed Centers of Excellence for Agrotech, Buildtech, Meditech and GFeotech group of technical textiles at an outlay US$ 8.97 million. The government will shortly launch a US$ 122.42 million Technology Mission on Technical Textiles and also create a Development Council for Technical Textiles.
Textile Industry of Tamil Nadu: The Textile Industry of Tamil Nadu has its significant presence in the National and State economy. It is the forerunner in Industrial development. Handloom, Powerloom, Spinning, Processing, Garment and Hosiery are the various sectors of the Textile Industry in Tamil Nadu and known for the largest economic activity next only to Agriculture in providing direct and indirect employment.
Tamil Nadu Export - RMG & Textiles
- Handlooms: Tamil Nadu occupies a pride place in handloom sector with maximum number of handlooms in the Country. Handloom weaving is one of the largest economic activities in Tamil Nadu. There are 4.13 lakh handlooms located in the State in which 2.32 lakh handlooms are functioning with 1130 Handloom Weavers Co-operative Societies and the remaining 1.81 lakh looms are outside the Co-operative fold, thus providing employment to 6.08 lakh weavers.
- Power looms: The Powerloom Sector in Tamil Nadu provides employment to around 9.14 lakh workers. As against 19.03 lakh registered powerlooms in India, 3.66 lakh are located in Tamil Nadu and of that 42,566 are covered under 164 Powerloom Weavers Co-operative Societies. During the year 2008-09, these Societies have produced 1487.50 lakh metres of cloth worth around Rs. 246.09 Crores and the turnover was around Rs.253.50 Crores.
- Textile and Spinning Mills: The Textile Mills are the backbone of Tamil Nadu's industrial development and are providing massive employment in the State predominantly spinning-oriented. The State textile industry has a significant presence in the national economy also. There are 3069 large, medium and small spinning mills in India, of which, 1889 are located in Tamil Nadu. The spinning mills in the State comprise 18 Cooperative Spinning Mills (5 functioning), 17 National Textile Corporation Mills (7 functioning) and 1854 Private Mills (including 23 Composite Mills). Those spinning mills provide employment for around 2.40 lakh persons. The capacity of the spinning mills in the State is around 18.92 million spindles. The State produces about 1612 million kg. of spun yarn per year and this is about 40% of the spun yarn produced per year in the entire nation.
- Garment and Hosiery: The Garment Sector in Tamil Nadu is one of the fast growing sectors in the textile industry. It is located substantially around Chennai City, with specialization in cotton fibre garments. The Hosiery Units in Tamil Nadu are located at Tiruppur and are manufacturing Knitwear Garments to the tune of Rs.11000 Crores per annum. There are around 4000 knitwear and woven garment production units in the State provide employment to around 5 lakh persons.
- Processing: The processing sector determines the core product value, product quality and has tremendous scope for innovations and control over the final output. Processing is an important value added segment in the Textile Industry. There are about 10397 Hand Processing Units and 2510 Power Processing Units in India, out of which 2614 Hand Processing Units and 985 Power Processing Units are located in Tamil Nadu.
Profile of Textiles Industry in Tamil Nadu
|ITEMS||ALL INDIA||TAMIL NADU|
|No. of Spinning Mills||3069||1889|
|Workers (in lakh)||8.94||2.40|
|Spindles (in Million)||39.27||18.92|
|Powerloom (in lakhs)||19.03||3.66|
|Workers (in lakhs)||47.57||9.14|
|Handloom (in lakhs)||34.86||4.13|
|Workers (in lakhs)||65.50||6.08|
Production (Bn. Sq. Mt)
Value (Rs. in Crores)
|Power Processing Units||2510||985|
|Hand Processing Units||10397||2614|
|Knitwear and garment Units||8000||4000|
Cost - Competitiveness: India enjoys significant low cost advantage in manufacture of Textiles and Apparels as follows:
Yarn: US$ per kg of yarn
Fabric: US$ per yard of fabric
Availability of low cost skilled labour: Labour costs in India continue to be significantly low as compared to other countries. This factor provides a significant advantage to the textile industry in India, in terms of increased productivity at lower costs.
Due to this significant cost-advantage, world's cutting edge fashion brands such as Hugo Boss, Diesel and Liz Claiborne are stepping up their sourcing from India.
Favourable domestic market: With increase in disposable income levels, consumer awareness and propensity to spend and the demographic trends in India are changing significantly. According to NCAER data, the consuming class, with an annual income of US$ 980 or above, is growing continuously and is expected to constitute over 80 per cent of the population by 2009-10. There is a significant change in the consumer mindset which has led to a growing trend of increased consumption of personal care and lifestyle products, as well as branded products. These trends offer great growth opportunities to companies across various sectors, including textiles.
Abundant and low price supply of raw-materials: As can be seen from the cost competitiveness chart, India is more cost-competitive than China and Brazil across a range of materials. India also has a diverse supply of raw materials, 23 varieties of cotton and all four varieties of silk. This inherent strength in availability of raw materials insulates the market from any supply-side shocks.
- Tamil Nadu has the largest cotton textile industry cluster in India which contributes to 39 per cent of the total production in the country. The country's largest textile cluster, Tirupur, is also situated in Tamil Nadu. This cluster accounts for 90 per cent of the country's cotton knitwear exports. The exports of the Tirupur cluster for the current fiscal year is US$ 1400 million.
- Chennai is another large cluster for woven garments. Exporting over US 1.2 billion. The state is emerging as a global sourcing hub for ready-made garments and hosts many global brands due to its cost-advantage.
- Abundant availability of skilled manpower in Textiles Processing and manufacturing - Largest turn-out of skilled manpower in India.
- Textiles parks in Chennai, Erode & Tirupur with Common Effluent Treatment Facilities.
- Reliable and quality infrastructure availability.
- Excellent Air Port and Sea port Logistics: Chennai has two modern ports in Chennai and another in Tuticorin, providing Gateway for exports and imports. Chennai container terminal is the most efficient in India. Chennai Port has two modern container terminals.
- 100 per cent FDI allowed through the automatic route.
- De-reservation of readymade garments, hosiery and knitwear from the small-scale industries sector in end-2000.
- Technology Mission on Cotton was launched to make quality raw material available at competitive prices.
- Technology Upgradation Fund Scheme (TUFS) to facilitate the modernisation and upgradation of the textiles industry till 2011-12. A total of 18773 applications involving a project cost of US$ 24.91 billion have been sanctioned under TUFS upto March 31, 2008.
- 40 textile parks are being set up under the Scheme for Integrated Textile Parks (SITP) which will attract an investment of US$ 4.38 billion.
- Tamil Nadu produces the largest pool of skilled technicians, skilled workers and Engineers in Textile Industry. Abundant availability of skilled manpower makes Tamil Nadu an ideal investment destination.
- Government of Tamil Nadu have so far promoted 13 Textile parks in Tamil Nadu. They are: Two textile parks under the "Apparel Park for Exports Scheme (APES)" ; Four projects under the "Textile Center Infrastructure Development Scheme (TCIDS)" and seven textile parks under the Scheme for Integrated Textile Parks (SITP) to upgrade the Handloom industry with world-class infrastructure facilities to meet international standards to augment export and generate employment, have been established in the State of Tamil Nadu by the Government of India at a total project cost of Rs.774.41 Crores.
- SIPCOT and South India Mills Association (SIMA) are setting up a Textiles Processing Park in an area of 317acres in the III Phase of SIPCOT Industrial park at Cuddalore in Tamil Nadu at a cost of Rs.450 Crores.
|S.No.||Name of the Project||Project Cost (Rs. in Crore)||Year of Sanction||Direct Employment Generation (No. of Persons)||Indirect Employment (No. of Persons)||Date of Completion|
|Apparel Park for Exports Scheme (APES)|
|1||Netaji Apparel Park, Tiruppur||17.62||2002||7000||9000||Completed|
|2||Apparel Park at Irungattu kottai||26.70||2004||10000||10000||Completed Production|
|Textile Center Infrastructure Development Scheme (TCIDS)|
|3||Kancheepuram||21.81||2004||Infrastructure Development||Completed (Except CEPT)|
|4||Windmill Project for TEKIC, Tiruppur||25.00||2003||Wind Power Generation||Completed|
|5||Cauvery Hi-Tech Weaving Park, Kumarapalayam||33.32||2005||1200||15000||Completed Production|
|6||Hi-Tech Weaving Park at Palladam||55.42||2005||2500||3500||Completed and Commenced Production|
|7||Hi-Tech Weaving Park at Kumarapalayam||34.82||2006||1500||1500|
|8||Integrated Textile Park at Chengapalli, Erode District||149.45||2006||5000||7500||October 2009|
|9||SIMA Processing Park at Cuddalore||112.60||2007||5000||15000||October 2009|
|10||Integrated Textile Park at Madurai||87.86||2007||3000||4000||October 2009|
|11||Integrated Textile Park at Karur||90.68||2007||3000||4000||October 2009|
|12||Hi-Tech Weaving Park at Erode||63.02||-||2300||4000||Revised Proposal sent to government of India for Approval|
|13||Vaigai Hi-Tech Weaving Park, Andipatti||56.11||-||2580||15000|