The Perpetually Increasing Textile Industry
The textile industry occupies a unique place in our country. After China, India is the second most preferred textile destination. Our major advantages in textile, overcoming china are easy availability of raw material, spinning, weaving and garmenting capabilities. Most fascinating varieties of yarn, fabric, home textiles, home furnishings and much more are seen in the bag of this rich culture. The home furnishing industry in India offers a splendid range of bedspreads, curtains, linen, placemats, cushion covers, table covers, kitchen accessories, made-ups, bath linen, and other home furnishings.
A variety of floor coverings such as carpets, durries, druggets, rugs and namdhas are also immensely popular. Textile Industry is the second largest employment generator after agriculture. It accounts for 14% of the total Industrial production and contributes to around 30% of the total exports. With substantial value-addition at each stage of processing, it gives a major contribution to the country’s economy.
The textile industry has became an export-oriented unit and earns foreign exchange for the country besides ensuring reasonable remuneration to the weavers and artisans involved in these industries. The major importers of Indian textiles are USA, UK, UAE, Germany and many more. Home Textiles Bed linen, table linen and towels dominate India’s home textile exports. Other home textiles that also participate in textile exports are drapery, cushion covers, and kitchen linen. Home textiles have an immense scope in the export market. Many companies are expanding in the basic home products like bed linen and towels. Exports of Home textiles, cotton terry towels, madeups have been increasing significantly too.
Other products like upholstery, curtains, furnishings, cushions etc also needs due attention. As per the experts the country exported approximately US”1.2 billion worth of home textiles last year. Almost 80 percent of overseas shipments are sent to the US and the European countries.
Though these products are gaining importance in the outside market, the competition faced by the Chinese is very strong. For now the going is fine, but India should focus on high value items, where China does not operate. This will result in higher realizations and in turn boost the topline of textile companies.
Also government initiative to further boost the export rates of home textiles have turned out to be a fruitful endeavor. The government has come up with many plans to provide home textile manufacturers and exporters with any kind of financial help required by them. They have also started promotional schemes through exhibitions and demonstration centers, buyer-seller meets and various other techniques. There is scope for home textile exports from India, but only if we can manufacture the right products now. Apart from these the demand for Indian cotton and silk made ups are also on the popularity list of the importing countries.
Silk Exports are said to increase roughly at the rate of 11% to 12% than the existing rate Indian silk plays a very vital role both in the domestic and export markets. There are four types of silks commercially significant i.e. Mulberry, Tasar, Eri and Muga. India is the only country that produces all the four varieties of silk commercially. India is the second largest producer of silk next to China and it’s the annual silk production is around 15,000 tons a year. Karnataka is the biggest silk producing state in India contributing to around 60% of the total. Other major silk producing states are Tamil Nadu, Adhra Pradesh, West Bengal and Jammu & Kashmir. Silk exports mainly comprise of silk fabrics, yarns, made-ups, garments etc. In the silk sector, the impact of technology is just beginning to become visible and India promises to match the highest international standards of quality and productivity. Major countries whom India exports silk textiles are Hongkong, UK, Germany, USA, UAE.
Through government consent and plans this sector is sure to flourish further in the export field thus giving it’s closest opponent, China a tough competition. Good Cotton yield this year flourishes the export market with it’s rich products like yarn, fabrics and made-ups The threads of India’s cotton industry go back many centuries. India was using cotton before the rest of the world was even growing it.
Even today it rules a bountiful portion of the market. India is one of the world’s largest producers of raw cotton and also has largest acreage under cotton cultivation. The central states of Maharashtra, Gujarat, and Madhya Pradesh continue to plant approximately 63 percent of India’s total cotton area. Gujarat has rapidly emerged as India’s largest cotton producing state. Along with Gujarat, the Northern Zone states of Punjab, Haryana, and Rajasthan also produce higher yielding cotton. Exports of Indian cotton textiles has shown tremendous growth in all categories like yarn, fabrics and made-ups reaching approximately more than 4 billion US” in value terms and covering over 185 countries spanning 5 continents. The USA and Bangladesh continue to be the largest markets of Indian cotton textiles with a share of over 10% in total exports. Major markets for cotton made-ups are Germany, UK, France, Belgium, Italy, Holland, Japan, Denmark etc.
Over the last two years, yields in India for cotton increased by 50 percent. Margins this year are also expected to improve because of a good cotton crop in India this year as well. Carpets and Other Floor Coverings No textile industry can be complete without carpets and floor coverings. Iran, China, India and Nepal rule the carpet exports in the world. Iran accounts for about 30% of exports, China and India for about 20% each, and Nepal for a little over 10%. Other significant suppliers include Pakistan, Turkey and Afghanistan. Imports are even more concentrated, with Europe and America accounting for almost 95% of imports, the German market alone taking in over 40% of global imports. Indian Carpets are renowned the world over.
With it’s appealing beauty, attractive designs and heart winning workmanship it has been able to capture the export market and make it’s mark in the world carpet market. India has made remarkable progress in export of carpets and was second to Iran in terms of value and number one in terms of volume in the last five decades. Handmade Woolen Carpets, Tufted Woolen Carpets, GABBE Woolen Carpets, Handmade Woolen Dhurries, Pure Silk Carpets, Staple/Synthetic Carpets, Chainstitch Rugs are some of it’s types for which there is a huge market demand in the export world. Coir carpets and mattingse produced in many attractive designs and colors find a ready market in India and abroad. Agra and Jaipur are two important centers of carpet weaving. Apart from these other important carpet producing centers in India are Mirzapur, Bhadohi, Gopiganj, Amritsar in Punjab and Bikaner in Rajasthan, Gwalior in Madhya Pradesh and Walajapet in Tamil Nadu. The finest of them come from the Kashmir valley.
Jammu & Kashmir, is famous for high knottage carpets in wool & silk, and for woolen namdhas and chain-stitched rugs, which are in great demand in European markets. The Indian carpet industry is a vibrant sector of textile economy and has considerable potential for growth. However due to lesser innovation techniques and outdated technology had led the unit value realization of Indian carpets to grow very low compared to carpets produced in Turkey and Iran. But now the government has come with various measures to eradicate these shortcomings and produce good quality carpets in the world market.
The Carpet Export Promotion Council Of India (CEPC) was set up by the Government of India to promote the exports of hand knotted carpets and other floor coverings. The council advises the government promotion measures and helps the exporter’s community in bringing their problems and requirements to the notice of the government.
It provides the necessary assistance to the Indian exporters, identifies the markets, provides financial assistance, sponsors participation in fairs and exhibitions and also conducts publicity abroad. Synopsis of Burgeoning Indian Textile Exports As the textile industry grows; opportunities for suppliers to the industry are also growing. Manufacturers and suppliers of textile in India are not afraid to invest as they see India as a growing textile giant. To it’s neighbor, China, the Indian textile industry is said to give tough competition.
India is successful in creating a niche market in the middle and high value segments of textile markets. Though still a major gap in Indian industry is its fragmented industry structure with a dominance of small scale. But the government is said to slowly remove such policies, which created this distortion. Small scale also brings with it the problem of productivity and small organizations often do not have resources to invest. But with improved government policies, schemes and programs this limitation has also been eradicated.
Government has been taking a number of steps from time to time to increase India’s share of the international textile markets. It has allowed 100 percent Foreign Direct Investment in the textile sector under the automatic route. Also many fund raising schemes like ‘The Technology Upgradation Fund Scheme’ the government has launched (TUFS) which facilitates the modernization and upgradation of the sector.
To improve the productivity and quality of cotton, the Government has launched the Technology Mission on Cotton (TMC), Under this, Incentives are provided for better farm practices, quality seeds and improvement in market infrastructure and modernization of ginning & pressing sector. To provide the industry with world class infrastructure facilities for setting up their textile units, a new scheme namely, ‘Scheme for Integrated Textile Parks’ has been launched by merging existing two schemes i.e. Textile Centers Infrastructure Development Scheme (TCIDS) and Apparel Park for Exports Scheme (APES). The Govt. of India’s support under the scheme, by way of grant or equity is limited to 40% of the project cost, subject to a ceiling of Rs.40 crores.
Also the technology use in India is being upgraded and use of fine machinery is being practiced. European buyers are looking for small orders and large varieties in which China fails to fulfil those demands and even here India has proved it’s mark as it supplies low quantity goods in different varieties. The import duties have also been brought down for industrial supplies, and are likely to come down even further. It is said that the boom in home textile segment is further expected to grow by 8.6% annually. With the right kind of positive approach, improved usage of raw materials and increase in textile exports this sector is said to grow favorable steps towards capturing the world textile market.
Karishma Roy
View all articles by Karishma Roy
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