Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE INDIAN TEXTILE INDUSTRY & MARKET GROWTH
Dr. Bharat Singh,
Associate Prof., Deptt. Of Commerce, Govt. PG College, Rishikesh, Uttarakhand Abstract:- The Indian textile industry has the potential to reach US$ 500 billion in size according to a study by Wazir Advisors and PCI Xylenes & Polyester. The growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports are implied to increase to US$ 185 billion from approximately US$ 41 billion currently. The textiles sector has witnessed a spurt in investment during the last five years.
The industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 1.85 billion during April 2000 to March 2019.In order to follow the goal of making India's development inclusive, the central government is focusing on a number of policies in providing best manufacturing and infrastructure to local artisans, technology and innovation, enhancing skills and strengths of the local industry. India is the second largest producer and exporter of cotton in the world at $6.3 billion, marginally close to China. India has emerged as the largest producer of cotton in the world with the production of 345 lakh bales in 2017-18 and second largest exporter after China. Currently, the cotton industry is sustaining livelihoods of 5.8 million farmers and 40-50 million people engaged in other activities like processing and trading.
The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. The organised apparel segment is expected to grow at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year period. The main objective of this paper is to analyse the market growth and future prospects & challenges face by textile Industry in India.
Key Word: Textile Industry, Market Growth, cotton, exports, imports employment, manufacturing, handloom, handicrafts.
1. INTRODUCTION
Indian textile industry has a glorious historical growth story. Nobody can say who grew the first cotton plant, who spun the first thread, and who wove the first piece of cloth but all are agreed over this that it was a denizen of this sacred land who had the privilege of discovering and making the first use of cotton and that this happened at a time when other countries were not even civilised. India, therefore, occupies a very important place in the history of textile and apparel industry. Textiles and apparel industry plays a pivotal role in Indian economy through its significant contribution to country‟s industrial output, employment generation and exports earnings. The industry accounts for around 10% in manufacturing production, 2% in gross domestic product (GDP), and 13% in total exports of the country. Employing over 45 million people directly and 60 million people indirectly the industry is one of the largest source of employment generation in the country5. The Indian textile industry is extremely varied, with the
hand-spun and hand-woven textiles at one end, while the capital intensive sophisticated mills sector at the other end of the. The decentralised power looms/hosiery and knitting sector form the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of designs make the Indian textile sector unique. The presence of entire value chain for textile production beginning from production of natural fibre to the production of yarn, fabric and apparel within the country gives it an edge over the countries like Vietnam, Bangladesh etc. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world. Pertaining to the capacity of Indian textiles industry, the organised textile sector has more than 3400 textile mills both in the Small Scale Industry (SSI) and the Non-Small Scale Industry.
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE Future growth prospects of any
industry can be well judged in the light of the growth trends of the industry in terms of its production, growing demand in the domestic and global market, Government policy support for the industry, overall change in the business environment and occurrence of the various economic developments at the global level.
Following the report published by Euler Hermes Economic Research, 2016 has been quite challenging than expected for the Textile and Clothing (T&C) sector as the world economy failed to break the +3% GDP growth rate. T&C output sales decreased by -1.5%. The decline is mostly due to deceleration and price cut and as a result, international trade, which accounts for a third of total T&C output, lost US$40billion worth of business.
However, the outlook for 2017 is less grim. Price increases are resuming due to stronger demand prospects in the major export markets viz. EU and USA. T&C producer prices are forecasted to rise +0.5% in 2017 in the US and China, and by +1.5% in 2018 for the latter.
„Fashionating World‟ also indicated an upbeat market due to stable cotton price in 2017.
This should have a positive impact on India‟s exports as well. Resilient long- term demand in the emerging economies due to rising middle class will unfold new dynamics in the textile trade and India must take an advantage of these opportunities. As the industry is slowly moving towards more use of manmade fibre whose prices are less volatile compared to cotton and wool, this gives a strategic option to exporting countries like India to invest and shift its focus towards emerging trends. Euler Hermes Economic Research, 2016 highlights that sector risk in China has increased which is due to rising cost and increasing competition from other countries. On the contrary, the risk for India is low implying India has better potential in the global market. ICRA predicted that during 2017-18, India‟s competitive advantage will move up due to positive change in the world market and support by the government. Pertaining to the growth trends of the overall textile and apparel industry, almost all the product categories has shown a positive growth scenario during the last four years from 2015-2018. Blended and 100% non-
cotton yarn has exhibited the highest growth rate of around 4% (CAGR) during the said period. This is followed by spun yarn at 1.61% (CAGR), manmade fibre at 1.07% (CAGR) and cotton yarn at 0.79%
(CAGR).
While, manmade filament yarn and cloth recorded a negative growth rate of (-) 2.7% and (-) 3.7%. This highlights that India has been able to record positive growth in production of its various products amid the highly volatile domestic and global economic environment during the post global crisis of 2008. Sluggish demand in major export destinations of India‟s textile and apparel products viz.
EU and USA, growing protectionism and interventions by the developed nations accompanied with rising competition with Bangladesh ,Vietnam, Turkey etc. have eventually affected the production of various textile and apparel products in the economy. However, there is an immense growth potential in Indian textiles and apparel industry due to several reasons. One, revival of demand in India‟s major export destinations two, rising per capita income and disposable income in the country three, shift in demographics four, changing lifestyles five, increasing demand for quality products, six, increase in participation of women in workforce seven , increased penetration of the organised retail and eight, highly focused approach and favourable policy support of the Government; all are set to fuel the demand of various textile and apparel products in the coming future.
Several inherent advantages of Indian textile industry viz. abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibres; presence of traditional skill sectors, handloom and handicraft; existence of entire value chain for textile production, comparative advantage in terms of skilled manpower and cost of production over major textile producers across the globe are also attracting major global textiles and apparel players to invest in India. As per the recent data, Indian textile industry has received FDI amounting to US$70 million during March 2017 to March 2018 which is an indication of further growth for the industry: Thus, the overall Indian textile industry possesses enormous opportunities and strengths
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE and along with huge challenges and
bottlenecks. Therefore, it is crucial to decide what should be done differently this time so we do not miss out on opportunities available.
1.1 Objectives and Research Methodology
The study examines the following objectives:
1. To understand India‟s current position vis-à-vis its future prospects.
2. To Outlining strategies to improve India‟s export competitiveness in comparison to its major competitors.
3. To Identifying major challenges that buying houses face with respect to procurement from suppliers/exporters situated in India.
4. To providing policy recommendations to make India the world‟s leading sourcing hub for textiles and apparel products.
This paper was fully based on secondary sources of data. The secondary data have been collected from various annual reports of Ministry of Textiles, Government of India, Foreign Trade Statistics of India, Journal, Magazines and Websites. Percentage and growth rate have been used to evaluate the production, consumption and exports of textiles products in India.
2. INDIAN TEXTILE EXPORTS
Global textile and apparel trade grew at a CAGR of 4% since 2005 to reach a value of US$ 743 bn. in 2016. During the same period, India‟s export of textile and apparel grew at a comparatively higher rate of 7% to reach US$ 37 bn.
Comparative Performance of Indian T&A Export’s vis-à-vis Global Trade (Values in US$ bn.)
Source: UN Comtrade and DGCIS
In terms of global ranking, India is ranked 2nd in textile export with 6% share and 5th in apparel export with 4% share. Overall, India holds the second position with 5% share of global exports. Apparel is the largest category exported from India having a share of 46% in the total textile and apparel exports. The segment-wise breakup of Indian textile and apparel exports is given below:
Segment Wise Share of Indian Textile and Apparel Exports (2016-17)
Source: DGCIS
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE Indian exporters are supported by
Government schemes and incentives such as Duty Drawback, Rebate of State Levies (ROSL), Merchant Export from India Scheme (MEIS), Advanced Authorization, Interest Subvention, Market Development Assistance (MDA) and Market Access Initiative (MAI). These support initiatives allow Indian exporters to overcome a large part of duty disadvantage they face in markets of EU and US where some of the
competing nations get a zero duty access.
European Union is the largest market for Indian textile and apparel products followed by the USA. In 2016-17, the share of exports to EU was 25% whereas that to the USA was 21%. A detailed analysis of India‟s exports to key markets over last 6 years indicates that exports to UAE have shown the highest growth rate with a CAGR of 17% while that to China have shown a sharp decline of 18%.
Table: T&A Export Trend in Key Markets Values in
US$ Mn 2011-
12 2012-
13 2013-
14 2014-
15 2015-
16 2016-
17 CAGR Share (2016- 17)
EU 9.6 8.5 9.5 9.9 9.3 9.3 -1% 25%
USA 6 6.1 6.7 7.2 7.5 7.6 5% 21%
UAE 2.2 2.2 2.7 3.8 4.5 4.8 17% 13%
Bangladesh 1.3 1.8 1.9 2 2.1 2.1 11% 6%
China 4.4 3.6 4.1 2.6 2 1.7 -18% 5%
Others 0 0 0 0 0 0 0% 0%
Total 34.5 33.1 37.6 37.7 36.7 36.6 1%
Source: DGCIS
Indian textile and apparel industry has the double advantage of being export competitive as well having large domestic consumption which is growing. This provides it resilience amid global uncertainties and the demand slowdown.
This aspect positions Indian sector far ahead of smaller exporting nations like Bangladesh, Vietnam, Myanmar and Sri Lanka which rely exclusively on exports.
In recent times Indian government has declared special support for the sector which has improved its cost competitiveness to great extent. For any international investor who is looking to diversify, India presents itself as the ideal investment destination by virtue of all these advantages. The social, political and financial stability of the country adds to this attractiveness further.
We at Wazir Advisors have been advising textile and apparel sector clients for almost a decade now. Looking into the emerging global trends where the manufacturing costs in China are
increasing and the emerging destinations like Myanmar and Ethiopia are facing political turmoil we are of the opinion that India will soon emerge as a global textile and apparel powerhouse. The opportunity in India for export as well as the domestic market is beyond question. However, Indian markets and systems have their own peculiarities which should be understood by the investor well in advance. As a textile and apparel sector management consulting firm our specialization lies in assisting clients to understand the opportunity, device business models to tap it and then help in implementation as well.
2.1 Indian Textile and Apparel Market
Indian textile and apparel market is currently estimated at US$ 122 Bn. The domestic consumption of textiles and apparel constitutes nearly 70% of the total market size while exports constitute the rest 30%.
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE India’s Textile and Apparel Market Break-Up (2016-17)
Source: DGCI&S and Wazir Analysis 2.2 Domestic Market
The domestic consumption of US$ 85 bn.
constitutes of apparel (US$ 63 bn.), technical textiles (US$ 16 bn.) and home textiles (US$ 6 bn.). From 2005 to 2016,
the overall consumption has grown at a healthy 10% CAGR. Segment wise, apparel is the largest one while technical textiles are the one with fastest growth rate.
Historical Growth of Indian Domestic Market (Values in US$ bn.) | CAGR 11%
Source: Wazir Analysis
Indian consumers‟ affinity towards brands and organized retailing is increasing, which is helping the consumption growth of all products, including textile and apparel. Organized retailing in India currently stands at only 9% of the overall retail market of US$ 650 Bn. Within this, apparel has a share of approximately 35%. With the growth of disposable income, favorable demographics, changing lifestyles and a high potential for penetrating non-urban metro markets;
the share of organized markets in India is expected to reach 31% by 2025. India is also witnessing the growth of its aspiring middle class who tend to seek value and consume premium products. This shift in the number of households within different income brackets will improve the consumption of products and services, which will definitely include textile and apparel as a lifestyle choice to enhance fashion. The vast population base and
growing economy has caused global retailers and brands to enter the Indian market, either on their own or through local partners.
3. CURRENT SCENERIO AND GOVERNMENT SCHEMES
Indian textile industry is one of the largest industries in India. It is the second largest industry in terms of providing employment opportunities to more than 35 million people in the country. The latest film by Sharat Katariya casting Anushka Sharma and Varun Dhawan has brought back the traditional art forms of the handloom and textile industry. The film is based on 'Made in India' campaign launched by the Indian government, to promote the country's indigenous textiles.
As the film talks about the need of social entrepreneurship as a tool for social and economic development of our artisans and how big companies are exploiting them,
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE let's take a look at some facts about
Indian textile industry. Indian Textile industry contributes to 7 per cent of industrial output in terms of value, 2 per cent of India's GDP and to 15 per cent of country's export earnings. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion. The size of India's textile and apparel market recorded USD 108.5 billion in 2015 and is expected to reach USD 226 billion by 2023, growing at a CAGR of 8.7 per cent between 2009 and 2023. India is the second largest producer and exporter of cotton in the world at $6.3 billion, marginally close to China. India has emerged as the largest producer of cotton in the world with the production of 345 lakh bales in 2016-17 and second largest exporter after China. Currently, the cotton industry is sustaining livelihoods of 5.8 million farmers and 40- 50 million people engaged in other activities like processing and trading.
India is the largest producer of jute in the world. The Sericulture and Silk Sector:
India is the second largest producer of silk in the world, producing around 18 per cent of the world's total silk.
Mulberry, Eri, Tasar, and Muga are the main types of silk produced in the country. It is a labor-intensive sector.
Textile industry has been a major thrust area for the policy makers. This is evident from India‟s industrial policy framework since independence, which has always comprised of several initiatives for the development and strengthening of the textile industry. However, its approach and orientation kept on changing in the light of the needs of the industry as well as of the economy at different points of time. Soon after the independence, the Government was aimed at growth of agricultural sector, protection of domestic industries and generation of employment which eventually shifted to modernise the textile industry, to promote its exports and to become competitive in the global market during 1990s. The global financial crisis in 2008-09 shifted the focus of the Government from stimulating growth of the industry to sustaining growth. As the world has gradually recovered from the global financial crisis, the present policy environment of the textile and apparel industry is in harmony with the Government‟s core governance philosophy of Sabka Saath Sabka Vikaas i.e.
inclusive growth and in line with its major goal of making India as a
‘Manufacturing Hub’. With this background, policy initiatives undertaken by the Government for the textile and apparel industry in general and specific to exports are categorised for different time periods.
4. INDIAN TEXTILES AND APPAREL INDUSTRY: POLICY DEVELOPMENTS Textile industry has been a major thrust area for the policy makers. This is evident from India‟s industrial policy framework since independence, which has always comprised of several initiatives for the development and strengthening of the textile industry. However, its approach and orientation kept on changing in the light of the needs of the industry as well as of the economy at different points of time. Soon after the independence, the Government was aimed at growth of agricultural sector, protection of domestic industries and generation of employment which eventually shifted to modernise the textile industry, to promote its exports and to become competitive in the global market during 1990s. The global financial crisis in 2008-09 shifted the focus of the Government from stimulating growth of the industry to sustaining growth. As the world has gradually recovered from the global financial crisis, the present policy environment of the textile and apparel industry is in harmony with the Government‟s core governance philosophy of Sabka Saath Sabka Vikaas i.e.
inclusive growth and in line with its major goal of making India as a
‘Manufacturing Hub’. With this background, policy initiatives undertaken by the Government for the textile and apparel industry in general and specific to exports are categorised for different time periods.
4.1 Recent Reforms
The recent reforms are undertaken by the present Government for the development of the textile sector, with a focus on boosting employment generation, investment, production and export promotion17. Furthermore, the Government is aimed at strengthening textile production and encouraging the industry to cater to the domestic and international market efficiently.
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE 1. Technology Up-gradation Fund
Scheme (TUFS) has infused investment of more than USD 41.33 billion in the industry.
Support has been provided for modernisation and up gradation by providing credit at reduced rates and capital subsidies.
2. Scheme for Integrated Textile Parks (SITP) provides funding for infrastructure, buildings for common facilities like design &
training centre, warehouse, factories and plant & machinery, as of date 74 textiles parks have been approved and are at various stages of implementation with 18 parks operational, 32 under implementation. The investment of USD 692 million is sanctioned by the government which will create 66,000 jobs.
3. Integrated Processing Development Scheme (IPDS) is being
implemented to make
Indian textiles more competitive and environment-friendly.
4. Integrated Skill Development Scheme (ISDS) plans to bridge the skill gap by training 1.5 million people for which USD 300 million has been allocated by the government.
5. Amended Technology Up gradation Fund Scheme for textile industry (ATUFS) designed to provide incentives to entrepreneurs and business owners for upgrading technologies. ATUFS facilities are expected to receive an investment of USD 15 billion and create 3 million jobs in the country.
6. Technology Mission for Technical Textiles (TMTT) has two mini missions to create a healthy ecosystem for the production of technical textiles in India. The Mini Mission I of the plan aims at standardisation, creating common testing facilities and several resource centres with IT infrastructure. Under Mini Mission II, support will be provided to create domestic and export markets for the technical textiles.
7. Special package for Textile and Apparel sector is announced to boost exports, labour friendly
policies, scaling up the production and to generate over 10 million jobs in the textile industry over the period of next three years.
8. Implications of Goods and Services Tax (GST) for Indian Textiles Sector will result in „Fibre- neutrality effect‟ on the Indian textile sector that means all man- made and natural fibres will be treated equally from the tax point of view.
4.2 Government Initiatives
In order to follow the goal of making India's development inclusive, the central government is focusing on a number of policies in providing best manufacturing and infrastructure to local artisans, technology and innovation, enhancing skills and strengths of the local industry.
4.2.1 Some of these major initiatives are listed below
The government has been implementing various policy initiatives and programmes for development of textiles and handicrafts, particularly for technology, infrastructure creation, skill development, including:
1. Amended technology up gradation funds scheme (ATUFS)
2. Power Tex india scheme
3. Scheme for integrated textile parks 4. Scheme for capacity building in
textile sector
5. Silk Samagra- integrated silk development scheme
6. North eastern region textile promotion scheme (NERTPS) 7. National handicraft development
programme (NHDP)
8. Comprehensive handicrafts cluster development scheme (CHCDS).
The Textile Ministry of India announced Rs 690 crore (US$ 106.58 million) for setting up 21 ready-made garment manufacturing units in seven states for development and modernisation of Indian Textile Sector.
4.2.2 Labour law reforms
Government is now bearing 3.67 per cent of Employee Provident Fund (EPF) contribution for new workmen in addition to existing reimbursement of 8.33 per cent employer contribution under
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE Pradhan mantra Rojgar Protsahan Yojana
for three years.
The Government also launched a special package to boost investment, employment, and exports in the garments and made-up sector. The special package was designed to create upto one crore jobs, and boost exports by US $ 31 billion and attract investment of Rs. 80,000 crores in 3 years. So far, it has generated additional exports of Rs. 5,728 crore and additional investments of Rs. 25,345 crore.
4.2.3 Enhancement of rates under MEIS
DGFT has enhanced the rates under Merchandise exports from India Scheme on readymade garments and made ups from 2 per cent to 4 per cent to boost exports in the textile world.
4.3 About Make in India
Prime Minister Narendra Modi launched the 'Make in India' campaign on September 25, 2014, to boost domestic manufacturing units. The aim of this campaign was to increase the contribution of manufacturing in GDP from 15 per cent to 25 per cent. PM mentioned this phrase in his Independence day speech 2014 emphasising on his concern that most entrepreneurs are moving out of the country. In the process, the government expects to generate jobs, attract much foreign direct investment, and transform India into a manufacturing hub preferred around the globe.
5. INDIAN TEXTILE INDUSTRY CHALLENGES
The Indian textile industry is highly fragmented and is being dominated by the unorganized sector and small and medium industries. The changing government policies at the state and central government levels are posing major challenges to the textile industry.
The tax structure GST (Goods and Service Tax) make the garments expensive.
Another important thereat is raising interest rates and labor wages and workers‟ salaries. There is higher level of attrition in the garment industry.
Although central government is wooing the foreign investors the investment is coming in the textile industry. In India
places such as Bangalore, Mumbai, New Delhi and Tirupur are the hubs of textile garment industries. These manufacturers have ability to produce the entire range of woven wear and knitwear at low cost with reasonably good quality within the short notices. The Indian textile industry has its own limitations such as accesses to latest technology and failures to meet global standards in the highly competitive export market. There is fierce competition from China, Bangladesh and Sri Lanka in the low price garment market. In the global market tariff and non-tariff barriers coupled with quota is posing major challenge to the Indian textile Industry.
The environmental and social issues like child labor and personal safety norms are also some of the challenges for the textile industry in India.
6. GROWTH ROAD FOR THE INDIAN TEXTILE INDUSTRY
India is now a fast emerging market inching to reach half a billion middle income population by 2030. All these factors are good for the Indian textile industry in a long run. Even though the global economic crisis seams to be worsening day-by-day, as long as economies are emerging and growing as those in South and South East Asia, textile industry is here to grow provided it takes competition and innovation seriously. Read below to have an insight of the stand of the Indian Textile Industry in the economy. The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. The organised apparel segment is expected to grow at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year period.
6.1 Some Solutions for the Growth of Indian Textile Industry
A couple of points given below will give food for thought for all the stake holders in the Indian textile industry:
1. The weak links in the Indian conventional industry such as
Vol. 03, Issue 04,April 2018 Available Online: www.ajeee.co.in/index.php/AJEEE weaving and finishing have to be
strengthened. A major thrust here is to have consolidated efforts by Indian Textile Machinery Manufacturers Association, end- users and the Government to undertake a moon shot and come- up with alternatives to European Machinery, which the weaving sector can afford. This should be doable within the next five years, if dedicated efforts are undertaken with the financial support for R & D by the Government through its various schemes;
2. Inch forward in the non-commodity textile sector, i.e., technical textiles sector from a non -crawling phase to at least a crawling industry in the next three years. General awareness on nonwoven and technical sectors has been created with the recent marathon training workshops and conferences such as, "Advances in Textiles, Nonwoven and Technical Textiles", organized for the past five years in Coimbatore by Texas Tech University, USA and those such as the excellance and IIT's Technical Textiles conferences. These have put India on the international map in technical textiles. These conferences are of less use if they do not translate into investments and new projects. This aspect has been slow.
Why is it so? Although the awareness on the broad-based technology know-how and end products has been created, less to no awareness has been created among industrialists on the marketability of non-commodity textile products.
7. 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 Indian textile industry requires support from both the Central and State governments to become competitive in the Global market. The Skill India and Make-in India programs of Central government headed by Prime Minister Sri Narendra Modi is helping the industry in getting required
skilled manpower and good market for textile products. It is high time for the textile industry to upgrade their technology and implement ERP to streamline supply chain and enhance customer relations management activities.
These measures are enabling the industry in becoming competitive in the global market. The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the last decade with the entry of several international players like Marks &
Spencer, Guess and Next into the Indian market. The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks &
Spencer, Guess and Next into the Indian market. The organised apparel segment is expected to grow at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year period The Union Ministry of Textiles, which has set a target of doubling textile exports in 10 years, plans to enter into bilateral agreements with Africa and Australia along with working on a new textile policy to promote value addition, apart from finalising guidelines for the revised Textile up gradation Fund Scheme (TUFS). The Indian cotton textile industry is expected to showcase a stable growth in FY2017- 18, supported by stable input prices, healthy capacity utilisation and steady domestic demand. High economic growth has resulted in higher disposable income.
This has led to rise in demand for products creating a huge domestic market. The domestic market for apparel and lifestyle products, currently estimated at US$ 85 billion, is expected to reach US
$160 billion by 2025. The Indian cotton textile industry is expected to showcase a stable growth in FY2017-18, supported by stable input prices, healthy capacity utilization and steady domestic market growth.
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