Sector Brief: 

A textile is any kind of woven, knitted or tufted doth or a non-woven fabric (a cloth made of fibres that have been bonded into a fabric). The Government has announced the release of a subsidy of US$ 533.87 million for the textile industry under the Technology Upgradation Fund scheme (TUFs). The Government extends 10 per cent capital subsidy and 5 per cent interest subsidy on installation of machineries and for processing machinery under the TUFS. A 41-member Working Group has also been announced to be set up with a National Fibre Policy, to ensure self-sufficiency in fibre consumption and export requirements in India.

Market Scenario and Potential

Indian textile industry contributes about 14 percent to industrial production, 4 percent to the country's gross domestic product (GOP) and 16.63 percent to export earnings. Exports form over 40 per cent of the country's total production of the textiles sector, the biggest employment generator after agriculture sector and is expected to generate 12 million new jobs by 20 I O. The sector targets US$ 6 billion foreign direct investment (FOI) by 2015 to be invested in green field units in textiles machinery, fabric and garment manufacturing, as well as technical textiles.

India has made inroads into the markets of its key competitors which include Asian countries such as Sri Lanka, Bangladesh, Vietnam and Cambodia. The Indian textile and apparel industry is taking a new course by entering the Chinese market. Most of the top global apparel retailers, such as JC Penny, Nautica, Docker and Target, have their sourcing network in India. Indian textiles and apparel exports, which is worth US$ 22 billion, is expected to register a four-fold increase to touch US$ 90 to 100 billion in the next 25 years.

Objectives

• FICCI has an active desk on Textiles sector which researches issues and explores potential for further growth.
• The textile desk engaged in arranging conferences, seminars and workshops on various areas of textiles thus creating a platform for discussion and growth.
• To generate awareness about the potentiaJ and benefits of textiles industry.
• To bridge the gap and promote the partnership and collaboration between the Government and the industry.
• To promote and provide opportunities to the Indian textile business globally.
• To discuss various aspects, as well as the changing perspectives and scope for future development.

FICCI Initiatives

In order to create awareness among the industry and other allied sector FICCI had been organizing conferences, seminar and workshop in various segments of textiles for the past six years. These programmes/events have been listed below.

• Seminar on Growth and Sustenance of Textile- 2003, 16th September, 2003- Mumbai.
• Seminar on Trade in Textiles & Clothing in the Post-Quota Regime, 14th September,2004 - Mumbai
• Textile Conference - Apparel and Garment, 9th June, 2005 - Mumbai
• Conference on TAG- Entry Strategies in Global Markets (i.e. Textile, Apparel, Garments), 16th Feb 2006 - Mumbai.
• Conference on TAG- Emerging formats and Potential of Apparel & Garments, 22nd September, 2008 - Mumbai
• Kalaexpo- Exploring the culture and heritage of the states, 20th Aug 2009 - Mumbai

Considering the importance of the Textiles Sector to India's economy and the demand for setting up a Taskforce on Textiles, FICCI has taken the lead in setting up a Taskforce on Textiles to discuss all issues relating to the sector such as major problems faced by the textile industry, need for cluster approach, setting up of Special Economic Zones in the state, policy rejuvenation, and ways for attracting investments into the sector. Based on its recommendation FICCI started initiating annual conference known as TAG with the objective to take stock of India's strengths and weaknesses in the Textiles, Apparels and Garments sector, under the current textile quota free regime, and suggest to the Government and the textile industry, ways and means to strengthen the sector, which gave immense benefit to the industry.

For More Information, contact:

Dr. Vaijayanti Pandit: (drvpandit[at]ficci.com)