With the textile industry set to grow exponentially in the coming years, India is poised to become a major player in the global market. But what does this mean for the country’s already booming textile industry.
In 2022, the Indian textile industry is expected to reach a whopping $250 billion. This growth is being spurred by a number of factors, including an increasing demand for Indian textiles abroad, and a growing domestic market.
Some of the major players in the textile industry in India are: Reliance Industries Limited, Aditya Birla Group, Madhusudan Group, Arvind Mills and Raymond Group.
The future of the textile industry
It is predicted that the future of the textile industry will be very bright and that there will be a lot of growth in this sector in the next few years.
Several government initiatives are aimed at promoting the growth of the textile industry. These include schemes such as the Technology Upgradation Fund Scheme (TUFS) and the Integrated Textile Parks Scheme (ITPS). The government has also announced plans to set up two new Textile Parks in Uttar Pradesh and Tamil Nadu.
The Indian textile industry is expected to grow at a rate of around 7% per year between 2022 and 2025. This growth will be driven by factors such as increasing domestic consumption, growing exports, and improving infrastructure. The industry is expected to create around 15 million new jobs over this period.
The impact of the textile industry on the economy
The textile industry is a significant contributor to the Indian economy, with the sector accounting for 14 percent of the country’s total export earnings in 2016-17. The sector is also one of the largest employers in India, with an estimated 40 million people employed in the industry.
The impact of the textile industry on the economy can be seen in a number of ways. Firstly, the sector is a significant contributor to India’s export earnings, with fabrics and garments accounting for around 14 percent of the country’s total exports in 2016-17. In addition, the textile industry is one of the largest employers in India, with an estimated 40 million people employed in the sector.
Secondly, the textile industry has a significant multiplier effect on the economy. This means that for every rupee that is generated by the sector, there is a knock-on effect that results in an additional few rupees being generated elsewhere in the economy. This is due to the fact that the textile industry has a forward and backward linkages with other sectors of the economy such as agriculture (for raw materials), transportation (for finished goods) and retail (for garment sales).
Thirdly,the growth of the textile industry has a positive impact on other sectors of the economy as well. For instance,the expansion of the textile industry leads to an increase in demand for other products and services such as machinery, dyes and chemicals. This in turn boosts employment and economic activity in these other sectors.
Fourthly,the textile industry plays an important role in terms of foreign exchange earnings. This is because a large proportion of India’s textile exports are destined for developed countries such as the USA and Europe. In 2016-17, fabrics and garments worth US$ 37 billion were exported from India to these markets.
Finally,the growth of India’s domestic market for textiles and garments provides a major fillip to the sector’s growth prospects. This is because growing incomes and changing lifestyles are resulting in increased demand for branded apparel and premium fabrics among Indian consumers. As per estimates by McKinsey & Company,the size of India’s branded apparel market is expected to grow from US$ 30 billion in 2016 to US$ 160 billion by 2025..
The potential for India’s textile industry in 2023
The potential for India’s textile industry in 2023 is immense. The country has the second largest population in the world and is projected to be the world’s most populous country by 2027. India is also the world’s fastest-growing major economy, with an annual growth rate of 7.5% in 2016.
The textile industry is one of the oldest and most important industries in India. It contributes to approximately 14% of the country’s industrial production and employs over 45 lakhs people. The export of textiles and garments is one of the leading items of India’s export basket.
In 2016-17, the total exports of textiles and clothing from India amounted to US$ 38 billion. The United States, United Arab Emirates, Bangladesh, UK, Germany and Russia are some of the major markets for Indian textile exports.
The textile industry is expected to grow at a rate of 7-8% per annum over the next five years. The growth will be driven by rising income levels, rapid urbanization and favorable demographics.
According to a report by Technopak, the Indian textile industry has the potential to create up to 30 million jobs over the next 10 years. With such immense potential, it is safe to say that the future looks promising for India’s textile industry.