229 SHRUTI S

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An Overview of Indian Textile Industry Roll no.-229 SHRUTI Presented by-

Textile:

Textile A textile is a flexible material consisting of a network of natural or artificial fibers often referred to as thread or yarn.

Textile industry:

Textile industry It is a term used for industries primarily concerned with the design or manufacture of clothing as well as the distribution and use of textiles.

Introduction:

Introduction Indian industry US$ 4395 billion. Global trade in this industry is now at US$ 350 billion. Consumers Japan, Australia and New Zealand Rank second with 8 percent of the total. Sorting High production of wool, cotton, jute and silk Expected revenue a value of USD 1,781.7 billion by the end of 2010.

Current state of Indian textile industry:

Current state of Indian textile industry The ready made garment sector is the biggest segment in the India’s textile export basket contributing over 46% of the total textile exports Contribution- 9% of the Excise collections 25% of world’s cotton export is done through India 4% to the Gross Domestic product Largest pool of cheap and skilled labour

Products Manufactured:

Products Manufactured bath towels Shover curtains silk sari Chair-Covers Table-Clothes Top-Treatment Emergency-Kits Bed sheets Folded blankets Other towels

Products Manufactured:

Products Manufactured

Some Other products-:

Some Other products- Blue jeans. Sarees, kurti, salwar kameez materials,ladies dresses. Mix sweaters Embroiedry dress es Woolen Carpets Shawls, Stoles. Woolen,Blazer

Some Other products-:

Some Other products- Khadi Blankets Cushion Cover,Curtain Bed Covers,Bed Sheets,Fitted Sheets. Designer Woven knitted and woven garments casual shirts. Woolen,Blazer Bags and Trousers

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In US $ Bn

India’s most exported product categories:

In US $ Mn India’s most exported product categories

SLOWDOWN IN GROWTH:

SLOWDOWN IN GROWTH The growth rate in the textile industry became 0.8 % in 2008-09 (April-August). The growth rate of Wool, Silk & Man-Made Textiles sector became negative (-1.2%) in the first five month in the year (April-Aug). The jute textile segment also declined in 2008-09 by 7.4%. Textile products picked up slightly (5.8%) in 2008-09 as compared to 3% in 2007-08 . 16

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SLOWDOWN IN EXPORTS:

SLOWDOWN IN EXPORTS Indian textile export increased to $19 billion. In April- May 2008-09, the textile exports were $3.4 billion, compared to $2.8 billion in April- May 2007-08. The share of both Textiles as well as Readymade Garments (RMGs) in total exports of India has been falling since 2006-07. 18

Increasing working female population:

Increasing working female population %age of female in textile sector Year

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Exports in 2005-06 (US$ ) Exports in 2006-07 (US$ ) Share in 2007-08 (%) Share in 2008-09 (%) Cotton Textiles 3092.28 3375.63 28.17 28.12 Manmade Textiles 1605.76 2075.85 14.63 17.30 Woolen Textiles 63.07 64.47 0.57 0.54 Cotton Garments 4908.63 5184.66 44.72 43.20 MMF Garments 712.89 621.02 6.49 5.17 Woolen  Garment 273.35 286.03 2.49 2.38 Garments Of Other Textiles 321.62 394.43 2.93 3.29 Total Exports 10977.60 12002.60 100.00 100.00 India ' s Exports of Textile Products

Slowdown & Impact on Employment:

Slowdown & Impact on Employment Current global financial crisis leads to blanket job cut of 5 million specially in artificial textile & weaving sector(Source: Economic Times). Other facts related to employment Currently, the textile industry is providing employment to 18% of the India s work force Provides indirect employment to another 88 million people in the country. Expected to provide employment to an additional 10 million people in the 11th five year plan 21

Market share in World(2008-09):

Market share in World(2008-09)

Declining Profitability:

Declining Profitability Profitability of textile sector has been falling since Sep 2008. The profitability declined by 99% in quarter ending Sep 2009. The profitability plunges @45% in June 2008 to @99% in Sep 2009. 23

Major players:

Major players Arvind Mills, Ahmedabad Raymonds , Mumbai Welspun India- Welspun is among the top five manufacturers of terry towels in the world. It sells its products in 24 countries. Ashima syntex , Ahmedabad Reliance industries , Ahmedabad DCM Textiles , New Delhi S.Kumars , Kolkata Nahar spining , Ludhiana The Bombay Dyeing & mfg. Pvt. Ltd ., Mumbai

Facts related to Investment and FDI:

Facts related to Investment and FDI The textile sector registered 50 per cent increase in investment during 2008-09 to US$ 10.46 billion from US$ 6.57 billion in 2007-08 The amount of FDI in the textile sector has increased slightly to only $37.9m in the textile sector in 2008-09 (April- July).

Problems in the industry:

Problems in the industry Fragmented industry Technological obsolescence Indian companies need to focus on product development Lower cost Competitiveness THREATS Ecological and Social Awareness Tackle Chinese aggression over the international market