India’s Textile and Apparel Industry
• India has touched US$ 44.4 Bn in the textiles and apparel industry including the handicrafts in the fiscal year 2021-22 indicating a substantial increase of 41% and 26% over corresponding figures in FY 2020-21 and FY 2019-20, respectively.
Which are the export destinations?
• USA – 27%
• EU – 18%
• Bangladesh – 12%
• UAE – 6%
• The export of Cotton Textiles stood at US$ 17.2 Bn which makes up the major share which is followed by ready made garments which stands at US$ 16 Bn.
• The share of the handicrafts stood at US$ 2.1 Bn which has seen a growth of 22% from the last fiscal year.
• The textile industry which is labour intensive provides upto 45 million employment in India which only stands next to the agriculture sector in terms of employment.
• The textile industry in India contributes significantly to the economy, it contributes upto 2.3% of the total GDP also it contributes 7% in in the industrial output.
• It is also important to note that the export revenue from the textile sector makes upto 12% of the total export earnings.
What are the Challenges faced by the textile industry?
• One of the hindrances to the Indian textile industry is that it is highly unorganised and fragmented which is a challenge in front of the mass production of textiles around the world.
• It is also evident that the textile industry has not received much attention from the foreign investors, FDI inflow into this sector is too low.
• Apart from this the exports from India has remained stagnant with new competitors in the South Asian region specially Bangladesh doing well in textile sector.
• The stakeholders of the textile industry argue that the tax regime in India has made Indian producers to be expensive and uncompetitive.
Source: THE HINDU.
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