International Journal of World Research, Vol: I Issue XXV, January 2016, Print ISSN: 2347-937X

GROWTH AND PROSPECTS OF TEXTILE INDUSTRY IN INDIA

Dr. R. ELANGOVAN
Professor in Commerce, Directorate Distance Education,
Annamalai University, Annamalai Nagar-608 002

Mr. R. RAMAN,
Ph.D., Research Scholar, Department of Commerce,
Annamalai University, Annamalai Nagar-608 002,

ABSTRACT

The ambiguity was not strikingly reflected in the textile policy. The textile policy attempted to promote
mills and handlooms simultaneously and consequently, ended up in contributing to sickness of mills and
decimation of handlooms. A third sector, namely power looms, came up to push both sectors on the back foot and
ran away with all incremental demand of textiles. It can be debated how far the ascendancy of power looms was
policy induced or an outcome of gradual development of a different pattern of industrial organizations. This
article highlights the growth and prospects of textile industry in India

Keywords :Textile Policy, Textile Industry, Power looms, Cotton, Silk, Textiles Consumption

Introduction
Textile Industry is one of the largest and oldest industries in India. It is a self-reliant and independent
industry and has great diversification and versatility. The textile industry can be broadly classified into two
categories i.e., organized sector and unorganized decentralized sector. The organized sector of the textile industry
represents the mills. It could be a spinning mill or a composite mill. Composite mill is one where the spinning,
weaving and processing facilities are comes under one roof.
The decentralized sector is engaged mainly in the weaving activity, which makes it heavily dependent on
the organized sector for their yarn requirements. This decentralized sector is comprised of the three major
segments viz., power loom, handloom and hosiery. In addition to the above, there are readymade garments, khadi
as well as carpet manufacturing units in the decentralized sector.

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 International Journal of World Research, Vol: I Issue XXV, January 2016, Print ISSN: 2347-937X

Textile Sectors in India

Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from
providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution
to industrial output, employment generation and the export earnings of the country. It contributes about 14% to
the industrial production, 4% to the GDP and 11% to the country’s export earnings. The textile sector is the
second largest provider of employment after agriculture.
The Indian textiles industry is extremely varied, with the hand-spun and hand woven sector at one end of
the spectrum, and the capital intensive sophisticated mill sector at the other. The decentralized power looms/
hosiery and knitting sector form the largest section of the Textiles Sector. The close linkage of the Industry to
agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in
comparison to the textiles industry of other countries. This also provides the industry with the capacity to produce
a variety of products suitable to the different market segments, both within and outside the country.

Various Categories of Textile Industry

Indian textiles industry can be divided into several segments, some of which can be listed as below:
 Cotton- India is the second largest cotton and cellulosic fibers producing country in the world.
 Silk- India is the second largest producer of silk and contributes about `8% to the to the world raw silk
production
 Wool- India has 3rd largest sheep population in the world, having 6.15 crores sheep, producing 45 million
kg of raw wool, and accounting for 3.1% of total world wool production. India ranks 6 th amongst clean
wool producer countries and 9th amongst greasy wool producers.
 Man-made Fibred- the fourth largest in synthetic fibers/yarns globally.
 Jute- India is the largest producer and second largest exporter of the jute goods.
Methodology
This paper was fully based on secondary sources of data. The secondary data have been collected from
various annual reports of Ministry of Textiles, Government of India, Foreign Trade Statistics of India, Journal,
Magazines and Websites. This paper covers a period of 10 years from 2004-05 to 2013-14. Percentage and
growth rate have been used to evaluate the production, consumption and exports of textiles products in India.

India’s Textiles production

Under the textile production, four varieties of the products are selected for this study. The value of the
products may be differing from year to year. The production performance of the textile industry in India was
assessed on the basis of kilograms in millions, of each variety.

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 International Journal of World Research, Vol: I Issue XXV, January 2016, Print ISSN: 2347-937X

Table 1: Production Performance of Textiles Industry in India

(Million Kgs)

Year Cotton Man-made Silk Wool Jute

2004-05 4131 2132 16.50 44.6 1746
(100) (100) (100) (100) (100)
2005-06 4097 2147 17.30 44.9 1843
(99.18) (100.70) (104.5) (100.67) (105.50)
2006-07 4760 2510 18.50 45.2 1942
(115.23) (117.72) (112.12) (101.34) (111.22)
2007-08 5219 2754 18.30 43.9 1935
(126.34) (129.17) (110.91) (98.43) (110.82)

2008-09 4930 2483 18.40 42.8 1763

(119.34) (116.46) (111.51) (95.96) (100.97)
2009-10 5185 2791 19.70 43.10 2010
(125.51) (130.90) 119.40) (96.63) (115.12)
2010-11 5763 2834 20.40 43.00 1805
(139.51) (132.92) (123.63) (96.41) (103.38)
2011-12 6001 2697 23.10 44.40 1967
(145.27) (126.50) (140.00) (95.98) (112.60)
2012-13 6205 2634 23.10 44.40 1967
(150.21) (123.54) (140.00) (95.98) (112.6)
2013-14 6630 2601 23.10 44.4 1967
(160.49) (121.99) (140.00) (95.98) (112.6)
Source: Annual Reports of Ministry of Textiles (from 2004-05 to 2013-14)
Table 1, shows the variety wise production performance of textile industry in India. In this concern, cotton
production was showing increasing trend from number 4131 million kgs in 2004-05 to number 6630millon kgs in
2013-14, except the year 2005-06 and 2008-09. The growth rate of the cotton production was 160 percent during
the study period. Under the manmade production was increased from 2132millon kgs in 2004-05 to 2834 millon
kgs in 2010-11. In the subsequent years, it has decreased to 2601 million kgs in 2013-14. The growth rate of the
manmade production was 122 percent during the decade. The silk production was increased slowly from 16.5
million kgs in 2004-05 to 23.1 million kgs in 2013-14. No changes in the production performance of silk products
during the last three years of the study period. The growth rate of the silk production was 140 percent. The wool
and jute production was showing fluctuating trend during the whole study periods. The wool production was
decreased from 44.6 million kgs in 2004-05 to 44.4 million kgs 2013-14. The growth rate was below the base
value of the study period. The jute production was increased from 1746 million kgs in 2004-05 to 1967 million
kgs in 2013-14. The growth rate was nearly 113 percent. Among the four varieties, the cotton production was
stand in the first position, the silk production stand in the second place, the manmade and jute stand in the third
and fourth place of the textile production. The wool production was showed poor performance during the study
period.
India’s Textiles Consumption
The consumption of the selected textile products are given in Table -2. The consumption was analysed in
the kilograms of millions.

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Table 2: Consumption of Textiles Products in India

(Million Kgs)
Year Cotton Manmade Silk Wool Jute
2004-05 3316 2133 24.9 129.4 1273
(100) (100) (100) (100) (100)
2005-06 3723 2135 25.7 135.1 1376
(112.27) (100.90) (103.21) (104.40) (108.09)
2006-07 3945 2281 24.1 144.8 1406
(118.97) (106.94)) (96.78) (111.90) (110.44)
2007-08 4027 2450 26.3 137.0 1403
(121.44) (114.86) (105.62) (105.87) (121.73)
2008-09 3893 2397 26.8 108.6 1284
(117.40) (112.37) (107.63) (83.92) (100.86)
2009-10 4403 2511 27.0 111.4 1441
(139.37) (117.72) (108.43) (86.09) (113.20)
2010-11 4413 2408 26.2 137.8 1355
(133.08) (112.89) (105.22) (106.49) (106.44)
2011-12 3972 2236 26.2 137.8 1355
(119.78) (104.83) (105.22) (106.49) (106.44)
2012-13 4473 2073 26.2 137.8 1355
(134.89) (97.19) (105.22) (106.49) (106.44)
2013-14 4866 1955 26.2 137.8 1355
(146.74) (91.65) (105.22) (106.49) (106.44)
Source: Annual Reports of Ministry of Textiles (from 2004-05 to 2013-14)
Table 2, exhibits the consumption of textile products in India, among the fine varieties, the cotton
consumption was increased from 3316 million kgs in 2004-05 to 4866 million kgs in 2013-14. The growth rate of
the consumption was nearly 147 percent during the study period.
The manmade consumption was decreased from 2133 million kgs in 2004-05 to 1955 million kgs in 2013-
14. The growth rate of manmade consumption was less than the base value of the study period. Under the silk
consumption shows increasing trend from 24.9 million kgs in 2004-05 to 26.2 million kgs in 2013-14. The growth
rate was 105 percent during the decade.
The wool consumption was increasing from 129.4 million kgs in 2004-05 to 137.8 million kgs in 2013-14.
But the production performance of wool was very low to compare the other products of textiles during the study
period. Under the Jute consumption was shows the increasing trend from 1273 million kgs in 2004-05 to 1355
million kgs in 2013-14. The growth rate of the wool and jute consumption was same position in the study period.
India’s Textile Exports
The Textiles exports basket consists of Ready-made garments, Cotton textiles, Textiles made from man-
made fibers, Wool and Woolen goods, Silk, Handicrafts, Coir, and Jute. Further, the export basket consists of
variety of items: cotton yarn and fabrics, wool and silk fabrics, man-made yarn and fabrics, etc., of which man-
made textiles and silk showed the highest growth rate. The selected textile products export performance was
given in Table-3.

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Table 3: Export of Textiles Industry in India

(Value US$ Million)

Year Cotton Manmade Silk wool Jute

2004-05 3544 2057 595 417 276
(100) (100) (100) (100) (100)
2005-06 4601 2040 693 456 296
(129.82) (99.17) (116.47) (109.35) (107.24)
2006-07 5564 2399 706 424 260
(156.99) (116.62) (118.65) (101.68) (94.20)
2007-08 6859 3177 658 443 328
(193.54) (154.44) (110.59) (106.23) (118.84)
2008-09 4803 3325 685 484 303
(135.52) (161.64) (115.12) (116.06) (109.78)
2009-10 5711 3971 597 470 218
(161.14) (193.04) (100.34) (112.70) (78.98)
2010-11 5792 4705 632 442 460
(163.43) (228.73) (106.22) (105.99) (166.66)
2011-12 6808 5631 473 508 457
(192.10) (273.74) (79.50) (121.82) (165.57)
2012-13 7524 5043 406 418 387
(212.30) (245.16) (68.24) (100.23) (140.21)
2013-14 8887 5694 398 424 424
(250.76) (276.81) (66.89) (101.67) (153.62)
Source: Annual Report of Ministry of Textiles (from 2004-05 to 2013-14)
Table 3 shows the exports of textiles products in India. Out of the selected products, the cotton export
shows the increasing trends from US$3544 million in 2004-05 to US$8887 million in 2013-14. The growth rate
of the cotton export was 251 percent. The manmade product export was increased from US$2057 million in 2004-
05 to US$5694 million in 2013-14. The growth rate was 277 percent during the study period. Under the silk
export was decreased from 595US$million in 2004-05 to US$398 million in 2013-14. The Wool and Jute exports
was also showing fluctuating trend during the study period.

Suggestion and Recommendations

 Ministry of textiles, centre government and state government should bear the burden of training these raw
laborers and convert them into human resource and productive assets.
 Government will give up a portion of tax collection but in return of it, foreign exchange inflows will
increase, national productivity increases and a competitive hosiery industry would developed in the
country that would ensure long term sustainability and its contribution in economic growth.
 Ensure power supply: State government should ensure uninterrupted supply of electricity to these textile
parks. For this state government may invite private players for power generation and distribution.
 International certification or textile industry is going to be compulsion in times to come. In order to export
textile products to Europe and US, it is likely to be must to have certain international certification.
Ministry of textile must encourage hosiery units’ or rather whole textile industry to obtain these
international certification.

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 Joint Marketing Effort: there is desperate need to establish Ludhiana as a brand known for hosiery
production. As discussed earlier Ludhiana hosiery sector is dominated by small scale industries and their
promotional budgets are marginal.
Conclusion
The Indian textiles industry has the potential to scale new height in the globalized economy. The textile
industry in India has gone through significant changes in anticipation of increased international competition. The
textile industry today is divided into three segments, i.e., Cotton, synthetic, and others like silk, wool, Jute etc.,
All the segments have their own place but even today cotton textiles continue to dominate with the first place.
Textile export plays a crucial role in the overall exports from India. Out of five varieties, the manmade products
leads first place in the exports of textile in India. The overall performance of the textile industry in India is
satisfactory during the study period. The Government of India has encouraged to the handloom sector by freezing
the growth of looms in the mill sector. A policy of ‘loom to loom’ replacement in the interest of modernization
and exports has followed by the Government.

References
1) Annual report 2009-10, ministry of textiles, Government of India, www.ministryoftextiles.gov.in
2) Textile committee, TQM consultancy, http://textilescommitee.nic.in/isol.htm
3) Ministry of textile, Govt of India, various annual reports.
4) Corporate catalyst (India) Pvt ltd. Sateesh.kulkarni@cci.in
5) India law offices g.khurana@indialawoffices.com , www.indialawoffices.com
6) Department of commerce, NIC & DGCI&S, Kollkata 2009

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