The Indian textiles industry has significantly contributed to the economic life of the country. Liberalisation in India and the scrapping of quotas in world trade of textiles and clothing has bolstered growth for the sector. In the post quota period, the industry size has expanded from US$ 37 billion in 2004-05 to US$ 49 billion in 2006-07. In this period, while the domestic market increased from US$ 23 billion to US$ 30 billion, exports increased from around US$ 14 billion to US$ 19 billion.

A leading sector in the Indian economy, textiles contributes 14 per cent to industrial production, 4 per cent to the GDP and around 17 per cent to the total export earnings. It is, in fact, the largest foreign exchange earning sector in the country. In addition, it provides direct employment to over 35 million people. And with continuing growth momentum, its role in the Indian economy is bound to increase.

The India Advantage

The textiles and apparels sector is a major contributor to our economy in terms of foreign exchange earnings and employment. Moreover certain natural advantages and external factors have fuelled the growth of this industry with a clear competitive edge.

India has overtaken the US to become the world's 2nd largest cotton producing country, after China, as per a study by International Service for the Acquisition of Agri-biotech Application. BT cotton was a major factor contributing to higher rate of production, from 15.8 million bales in 2001-02 to 31 million bales in 2007-08.

India accounts for:

• 61 per cent of the global loomage
• 22 per cent of the global spindleage
• 12 per cent of the world's production of textile fibres and yarn.
• 25 per cent share in the total world trade of cotton yarn.

Textiles and Apparel trade

The global textiles and apparel trade estimated at US$ 450 billion and expected to touch US$ 700 billion by 2010 with demand for textiles and apparels expected to grow to 25 per cent from current figures where Asia will contribute 85 per cent. The sudden growth and demand for textiles and apparels will prompt international brands and buyers will look to source low cost producing countries

India's textiles and apparels industry is estimated to be worth US$49 billion where 39 per cent is accounted by the exports market. The domestic and exports markets in this sector are expected to grow at 6.5 per cent and 12 per cent CAGR respectively. The growth has continued with total exports increasing to US$ 19.62 billion in 2006-07. Currently India has a 3.5-4 per cent share in world export of textiles and 3 per cent in clothing exports.

Indian textiles and products handlooms and handicrafts are exported to more than a 100 countries, Europe continues to be India's major export market with 22 per cent share in textiles and 43 per cent in apparel, the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32.6 per cent share respectively. Other significant countries in the export list include the UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and Japan. A recent study of the textile industry predicts growth for the sector form USD 19 billion in 2006-07 to USD 50 billion by 2012.