TEXTILE SECTOR OVERVIEW-2020
Statistics, news & updates: everything you need to know about the Textile Industry in India
- COVID-19 Impact
- Industry Clusters
- Growth Drivers
- Key Players
- Market Stats
- Fabric – Woven & non-woven
- Fibres & filaments
- Textile Machinery
- Rope, Cordage, Twine, Tyre cord & fabric
- Technical Textiles/Geotextiles
The textile industry is one of the earliest industries to have developed in India. Its inherent and unique strength is its incomparable employment potential. This is owing to the presence of the entire value chain from fibre to apparel manufacturing within the country.
In fact, it is the biggest employer after agriculture. It provides direct employment to 4.5 crore people and another 6 crores in allied sectors. Furthermore, India is the second-largest manufacturer of textiles and clothing in the world. India is also the second-largest exporter of textiles and apparel. In fact, it has a share of 5% in global trade.
Besides, various governmental flagship programs further drive growth. These include ‘Amended Technology Upgradation Funds Scheme (ATUFS), North Eastern Region Textile Promotion Scheme (NERTPS) and Scheme for Integrated Textile Parks.
The textile and clothing industry employs over 105 million people. It earns around the US $40 billion forexes, apart from substantial revenue under GST and other taxes.
The Indian textile industry has taken a major hit due to COVID-19. This is because most of the Indian yarn exports are to China. The agency assumes that India’s exports will be substantially hit till 1HFY21. In fact, it has already reduced by more than 40% until January 2020 due to the US-China trade war.
The majority of downstream players had to incur inventory losses due to the ongoing geopolitical tensions in crude oil. This further lead to the prices declining by more than 40% month on month in March 2020.
The fabric industry registered a marginal improvement in exports in 10MFY20. This was coupled with lower raw material costs and increased export demand from Bangladesh and other countries. Indian ready-made garments players have been hoping of a revival in demand and shift of orders from China since the start of a pandemic. However, with the spread of coronavirus in Europe, demand and orders have been reduced from major retailers. Due to the pandemic‘s impact on consumer behaviour and habits, “online-sales” are expected to witness a significant surge, even after the industry recovers.
The statistics below are taken from Industry data available pre-Corona virus impact.
- M+V manages an Throughput of USD 4 Million
- More than 150 SKU`s of the Fabric Industry are managed by M+V
- M+V has 110 Trade Partners across India
- Abundance of raw material, presence of entire value chains, competitive manufacturing costs, availability of skilled manpower, large and growing domestic market, rising per capita income, higher disposable incomes and preferences for brands and increase in organized retail landscape and e-commerce are the key growth drivers for the textile industry.
- There is an increased focus on technical textiles due to the growth of end-user industries. These include automotive, healthcare, infrastructure, aviation, defence and oil and petroleum.
- The textiles industry in India is experiencing a significant increase in collaboration between global majors and domestic companies.
- The sector is highly diversified. It caters to a wide range of segments ranging from traditional handloom products to cotton, wool and silk products. Besides, it has products that vary across natural & man-made fiber, yarn and apparel.
- The slowdown in the Chinese economy has increased the cost of textile production in China. Hence, Chinese textile manufacturers have lost competitive advantages of the lower cost of production in the last few months.
- Under Union Budget 2019-20, the government has allocated Rs. 700 crore (US$ 97.02 million) for Amended Technology Upgradation Fund Scheme (ATUFS).
- As of November 2018, Odisha is planning to build three textiles parks with the aim to promote investments in the textile sector.
- Government of India has approved a new skill development scheme named ‘Scheme for Capacity Building in the Textile Sector (SCBTS)’. It has an outlay of US$ 202.9 million from 2017-18 to 2019-20.
- The Textile Ministry of India earmarked US$ 106.58 million for setting up 21 readymade garment manufacturing units in seven states for development and modernisation of Indian textile sector.
- 100 per cent FDI is permitted in the sector. Cumulative FDI inflows into the textiles sector stood at over US$ 3.19 billion from April 2000 to June 2019.
- India can become the one-stop sourcing destination for companies from the Association of Southeast Asian Nations (ASEAN). This is because of the existence of several opportunities for textile manufacturing companies from 10-nation bloc to invest in India.
- The size of India’s textile market as of 2018 was around US$ 102.2 billion. It is expected to touch US$ 223 billion market by 2021. It will be growing at a CAGR of 10.14 per cent between 2009-21.
- The new textile policy aims to achieve US$ 300 billion worth of textile exports by 2024-25. It is expected to create an additional 35 million jobs. By 2022, the Indian textile sector will require additional 17 million workforce.
- India is world’s largest producer of cotton.
- During FY20, production of fibre in India stood at 1.443 million tonnes. In fact, it reached 0.629 million tonnes during April–August 2019.
- Production of yarn grew to 5,862 million kgs in FY19 from 4,712 million kgs in FY11. This implies a CAGR of 2.69 per cent.
- The technical textile industry is expected to expand at a CAGR of 12.20 per cent during FY18–23 to US$ 32 billion in FY23. In FY18 it reached US$ 18 billion.
- The Government of India has assigned 207 Harmonized System Nomenclature (HSN) to promote India’s technical textile industry. It is aiming to further increase its market size to US$ 27.72 billion by 2020-21.
- US$ 100.15 million have been allocated for the Amended Technology Upgradation Fund Scheme (ATUFS).
- India’s domestic textile and apparel market is currently worth US$ 106 billion. It is expected to grow at a CAGR of 12% to reach US$ 220 billion by 2025-26.
- Exports of textiles from India reached US$ 38.70 billion during FY19 and US$ 11.98 billion during April-July 2019. It is expected to increase to US$ 82.00 billion by 2021.
Key Players in India
- Zara, Mango, Benetton, Levi’s, Esprit, Forever 21, Vero Moda, H&M, Promod, Zambiati, Marks&Spencer, Monti
- Orient Craft, Victoria Mills, Loyal Group, Ruby Mills, Digjam, Richa Fabric, Vardhman, Mandhana, Sutlej Textiles, Premier Textile Mills, Bombay Rayon, Arvind Mills, ITC Wills Lifestyle, DCM