India owns 59 % of the world’s market share in textiles and garments and is expected to be the leading textile-producing country in the world by 2020. It has the potential to become the manufacturing hub due to skilled labor, low costs and natural resources available. But still, the domestic textile industry is unable to fulfill the industry`s demand. Thus, what are the current reforms by the Indian Government in order to push its growth?
Along with growing demand in the entire sector, India’s Technical Textile Industry is expected to expand by 20 % annually within the next five years to reach US$ 30 billion. The rapid growth is a result of the increasing awareness about superior functionality of technical textiles and the rising demand for quality which led to higher consumption and growing exports. Furthermore, investments in industry sectors such as automotive, healthcare, infrastructure, oil and petroleum among others drove the consumption as well. So today, the growing sectors within the Technical Textile Industry are mainly the medical, protective, agricultural textiles as well as geotextiles due to a rising demand.
The Indian Government encourages the development in order to tap the growth opportunity of the Technical Textile Industry in the country by implementing in fact four schemes:
- The technology mission
- The scheme for strengthening of database and standards for technical textiles
- The scheme for the usage of agro-textiles in the north-eastern region
- The restructured technology upgradation fund scheme
The Indian Textile Industry and especially, the sector of Technical Textiles holds great potential for investors. The latest figures document the enormous development. The industry (including dyed and printed) attracted FDI worth US$ 1,647.09 million from April 2000 to May 2015. The government will unveil a new national textiles policy that aims to achieve US$ 300 billion in exports by 2024-25 and seeks to create 35 million new jobs by attracting both domestic and foreign investments. Hence, a future road map for the Textile & Clothing Industry is provided.
To read the latest news on Textile Industry in India click Textile Newsletter