Report on Indian Textile Industry
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Report on Indian Textile Industry:
Indias cotton and jute are well-known globally. Various statistics confirm that India is a textile powerhouse. According to the Annual Report 2009-10 by the Indian Ministry of Textiles, the textile and clothing industries account for 14% of Indias total industrial production, 4% of GDP, and 17% of total exports. The textile and clothing industries have 35 million directly hired workers, the second highest number after the agriculture industry. India has the most land of any country allocated for cotton cultivation (900 hectares), 25% of the worlds land for cotton farming. India is also the worlds second largest silk producer.
The size of Indias textile and clothing industries was INR 2.7 trillion in the fiscal year of 2010-11; 65% of this, about INR 1.75 trillion, was consumed in the domestic market. Total exports of textiles and clothing totaled USD 20 billion, of which clothing accounted for 45%.
Despite its established strengths, Indias textile industry has recently faced new challenges. The Multi-Fibre Arrangement (MFA) was eliminated in 2005 and replaced by the World Trade Organization Agreement on Textiles and Clothing (ATC), which enabled the liberalization of trade in textiles and clothing. Indias textile and clothing industries fell into unchecked competition with Brazil, Turkey, Vietnam, Bangladesh, and China in the major export markets, including the US and the EU.
In order to increase the competitiveness of the textile industry, the growth engine of the Indian economy, the Government of India is currently taking measures to develop the industry: making the structure of the textile industry more sophisticated, greatly increasing government subsidies, and providing large tax credits and benefits to corporations.
Over 10% increase in clothing consumption