DEVELOPMENT OF COTTON INDUSTRY IN INDIA

TEXTILE INDUSTRYContribution of T&C industry to India’s GDP

4%

Contribution of T&C industry to India’s Industrial Production

14%

Contribution of T&C industry to export earnings

12%

Indian textile industry can be divided into several segments, some of

which can be listed as below:

• Cotton Textiles

• Silk Textiles

• Woolen Textiles

• Readymade Garments

• Hand-crafted Textiles

• Jute and Coir

Second largest provider of employment after agriculture.

Cotton textiles has registered a growth of 8.2% during

April-September 2010-11, while wool, silk and man-made

fibre textiles have registered a growth of 2.2 % while

textile products including wearing apparel have registered

a growth of 3 %.

India has the potential to increase its textile and apparel

share in the world trade from the current level of 4.5% to

8 % and reach US$ 80 billion by 2020.

MARKET SIZE The Vision Statement for the textiles industry

for the 11th Five Year Plan (2007-12) sees India securing a 7% share in the global textiles trade by 2012.

Currently, the Indian textiles industry is valued at US$ 55 billion, 64 % of which caters to domestic demand.

Total textile exports during April-March 2010-11 stood at US$ 12.5 billion.

(US$ BILLION)

VALUE(US$ BILLION)

SHARE IN WORLD IMPORTS(%)

ANNUAL PERCENTAGE CHANGE (%)

2010 1980 1990 2000 2010 2005-10 2008 2009 2010

EUROPEAN UNION

164 - - 41.0 44.7 5 16 -11 2

Extra –EU (27)imports

88 - - 19.8 23.8 6 10 -9 3

UNITED STATES

82 16.4 24 33.1 22.3 0 -3 -13 14

JAPAN 27 3.6 7.8 9.7 7.3 4 7 -1 5

HONK0NG 17 - - - - -2 -3 -16 7

CANADA 8 1.7 2.1 1.8 2.3 7 8 -8 10Source : WTO –International Trade Statistics:

LEADING IMPORTERS

PRODUCTION CENTRES

EXPORT GROWTH

2005-06 2006-07 2007-08 2008-09 2009-10

APPAREL EXPORT 17.52 19.5 22.15 20.94 22.42

0

5

10

15

20

25

PERC

ENTA

GE

APPAREL EXPORT

SOURCE : MINISTRY OF TEXTILES

REGION WISE EXPORTS

(COMPARISON)2010-11 2009-10

2008-09

Source : Ministry of Commerce

FOREIGN TRADE POLICY (2009-2014)

Duty free import of specified trimmings, embellishment etc shall be available @ 3% on exports of polyester made-ups in line with the facility available to sectors like textiles & leather.

It will promote export of products such as micro cloth, which has become popular in home textiles.

Readymade Garment sector granted enhanced support under MLFPS for a period of further 6 months from October, 2010 to March, 2011 for exports to 27 EU countries.

TEXTILE PRODUCTION CENTRES

Amritsar

Phagwara Ludhiana Bhiwani Delhi Faridabad Modinagar Kanpur Kolkata

Ahmadabad Surat Mumbai Bengaluru Chennai Coimbatore Madurai Raurkela Tirrupur

MAJOR PLAYERS IN TEXTILE INDUSTRY

Welspun India ltd. Vardhaman Group Alok Industries ltd. Raymond Industries Arvind Mills Limited Bombay Dyeing Garden Silk Mills ITC Lifestyle

TRENDS IN DOMESTIC MARKET Domestic Apparel market growing at 10%

p.a. Urban Consumers increasingly seeking

branded and lifestyle products. Semi-urban and rural Indian markets are

growing faster than expected. Helpful demographic profile and increase

in working female population

FACTS AND FIGURES Current share in world export of textiles – 3.5 - 4

%. Current share in world clothing export – 3 %. Largest export segment – Readymade

Garments. The apparel sector supports 7 million people as a

part of its workforce.

OPPORTUNITIES Integration of information technology.

Emerging retail industry and malls.

Increased disposable income.

Strengths India’s strong base in raw-materials

Cotton dominates the industry Nearly 56% of yarn produced is made of cotton Country produces nearly 23 varieties of cotton India is the second largest player in the world cotton

trade

India’s position is strong vis-à-vis other countries in most raw materials Largest producer of jute Second largest producer of silk Third largest producer of cotton, accounting for nearly

16% of global production Third largest producer of cellulosic fibre/yarn Fifth largest producer of synthetic fibres/yarn Eleventh largest producer of wool

Low cost skilled labour Presence across the value chain

Reduced lead time Growing domestic market

Weakness Fragmented Industry Historical Regulations Lower Productivity and

Cost Competitiveness Technology

Obsolescence

Opportunities New Product Development

Stress on product development New specialized fabrics Investing in design centers and sampling labs

Increased use of CAD to develop designing capabilities

Investing in trend forecasting

Threats Competition in domestic market Ecological and social awareness Regional alliances China

Major Players of Indian Textile Industry

Arvind Mills Raymonds Reliance Textiles Vardhaman Spinning Welspun India

Impact on Indian Textile Industry

Decreasing demand in European and US markets

Decreasing demand for retail garments Mills in Rajasthan and Tamil Nadu

reduced shifts (resulting in job loss) cut down capacity

India was losing out to countries like Bangladesh, Vietnam and Cambodia

The chairman, Confederation of Indian Textile Industry (CITI), R.K. Dalmiya

Conclusion

A huge window of opportunity has opened up for the Indian Cotton industry which is fast closing up. Various players need to get act together. It’s now for players to make investments in building the capacities and making them integrated manufacturers. They need to invest more in R&D. This is the only way they can compete with the Chinese dragon.

PRESENTED BY :-KUSH AGGARWAL

VIII-A