Indian cloth manufacturing and export industry is known for its fine craftsmanship and creativity and this is the reason it enjoys a global appeal. India is one of the biggest players of the Cotton, silk and denim industry globally. Indian designers too are admired for their talent and hence India is a prominent part of the global fashion world too.
The huge raw material and manufacturing base that India has, makes it the second-largest exporter of textiles and apparel, in the world. Also, the textiles and apparel industry contributes significantly to the nation’s economy with massive domestic and export share. The sector contributes 15% to the country’s total export earnings and is also one of the biggest job-creating sectors. Currently, the industry employs more than45 million people directly.
Some interesting facts about Indian apparel export industry:
- The total textile and clothing exports for the FY19 is calculated to be US$ 36.62 billion.
- India is one of the biggest players in the readymade garment section with RMG exports calculated at US$ 16.27 billion in the year 2018-19.
- The country is also the largest cotton producer which contributes towards lower costs of manufacturing in India.
- India exports to some of the key markets in the world including countries like the USA, European Union, Parts of Asia and the Middle East.
Development in Manufacturing:
The manufacturing sector in India is pretty strong with firm bases in Calcutta and Ludhiana. Indian apparels are in high demand across the globe for fine craftsmanship and creative designs. Time and now, the government has taken initiatives to make the industry more organized and firm. Some of the key initiatives from the government for the textile industry in India include:
- Amended Technology Upgradation Funds Scheme (ATUFS)
- PowerTex India Scheme
- Scheme for Integrated Textile Parks
- SAMARTH- scheme for capacity building in the Textile Sector
- Silk Samagra- integrated silk development scheme
- North Eastern Region Textile Promotion Scheme (NERTPS)
- National Handicraft Development Programme (NHDP)
- Comprehensive Handicrafts Cluster Development Scheme (CHCDS).
Thanks to the easy availability of labor and raw material as well as investments pouring in, the Indian textile industry is considered to grow bigger than its existing size by 2022.
Development in Cloth Exports:
India’s apparel exports are expected to increase significantly in the near future. The forecast claims that by 2021, the exports of textiles and apparel will grow to US$ 82 billion with CAGR of 12.06 percent. The government initiatives to strengthen the textile export industry in India includes:
- The Apparel Export Promotion Council (AEPC)
- increased Merchandise Export from India Scheme (MEIS) rates
- FDI in the sector
There is a great scope for the Indian textile manufacturing and export industry to grow and contribute towards the world’s economy. This also offers great job creation expectations to the Indian economy, especially in a time when the country is not considered very respectable in terms of the unemployment rate. There are various industries which are growing significantly and bagging more and more international client including reputed brand names.