Factors affecting the exports of indian textile industry

It contributed two per cent to the GDP of India and employs more than 45 million people in In February alone, shipments witnessed a steep According to Jain, the domestic textiles and apparel industry faces a big threat from rising imports due to the removal of countervailing duty and special additional duty in the Goods and Services Tax GST regime.

growth of textile industry in india for past 10 years

The sector expects the government to at least partially compensate the industry in the interim period. High economic growth has resulted in higher disposable income.

Signing free trade pacts with major markets like the European Union, US, Canada and Britain can equalise market access positions with key competitors like Bangladesh and Vietnam.

textile industry in india

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 textiles make the Indian textiles sector unique in comparison to the industries of other countries.

In dollar terms, the country's textile and apparel exports stood at USD This has led to large capacity expansion in yarn manufacturing in Vietnam, which has surpassed India to become the largest supplier of cotton yarn to China.

textile industry in india

He noted that the steep up-trend in imports will only worsen the situation going forward, observing that a worrying factor is the backdoor entry of Chinese fabrics into the Indian market via Bangladesh.

The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum.

Textile industry analysis slideshare

It contributed two per cent to the GDP of India and employs more than 45 million people in As a result, India's cotton yarn exports to China have decreased by 49 per cent during and , while Vietnam's exports of cotton yarn to China have increased by 88 per cent during the same period. He noted that the steep up-trend in imports will only worsen the situation going forward, observing that a worrying factor is the backdoor entry of Chinese fabrics into the Indian market via Bangladesh. 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. Investment The textiles sector has witnessed a spurt in investment during the last five years. In fact, shipments from the textile and clothing sector have consistently missed annual targets set by the government in at least the previous three financial years, since China, which is the largest market for cotton yarn, has imposed around 3. The sector contributed 15 per cent to the export earnings of India in The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. During the April-February , exports of readymade garments of all textiles stood at Rs 97, Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same. This has led to rise in demand for products creating a huge domestic market.
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Factors Affecting on Indian Garment Exports