Overview: Indian Textiles Industry

indian-textiles

The Indian Textiles Industry has an overwhelming presence in the economic life of the country and is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world.

Indian textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. Indian textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scope for the other ancillary sectors. apart from providing one of the basic necessities of life, the industry also plays a vital role through its contribution to industrial output, employment generation, and the export earnings of the country.

The government of India has also promoted a number of export promotion policies for the textile sector in the union Budget and the Foreign Trade Policy. as per the 12th Five year plan, the integrated skill development scheme aims to train over 2,675,000 people within the next 5 years. This scheme would cover all sub sectors of the textile sector such as textiles and apparel, handicraft, handlooms, jute and sericulture. The textiles sector has also witnessed a spurt in investment during the last five years. The industry attracted Foreign direct Investment (FdI) worth uS$ 1.04 billion during april 2000 to November 2012. and the potential size of the Indian textiles industry is expected to reach uS$ 220 billion by 2020.