Textile Industry & Market Growth in India

Introduction

India’s textiles sector is one of the oldest industries in the Indian economy dating back several centuries. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion in FY18 and is expected to increase to US$ 82.00 billion by 2021 from US$ 31.65 billion in FY19*.

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. The decentralized power looms/ hosiery and knitting sector forms 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 textiles make the Indian textiles sector unique in comparison to the industries of other countries. 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.

Market Size

The Indian textiles industry, currently estimated at around US$ 150 billion, is expected to reach US$ 250 billion by 2019. India’s textiles industry contributed seven percent of the industry output (in value terms) of India in 2017-18. It contributed two percent to the GDP of India and employs more than 45 million people in 2017-18. The sector contributed 15 percent to the export earnings of India in 2017-18.

The production of raw cotton in India is estimated to have reached 36.1 million bales in FY19^.

Investment

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$ 3.09 billion from April 2000 to December 2018.

Some of the major investments in the Indian textiles industry are as follows:

• In May 2018, the textiles sector recorded investments worth Rs 27,000 crore (US$ 4.19 billion) since June 2017.
• The Government of India announced a Special Package to boost exports by US$ 31 billion, create one crore job opportunities and attract investments worth Rs 800.00 billion (US$ 11.93 billion) during 2018-2020. As of August 2018, it generated additional investments worth Rs 253.45 billion (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million).

Government Initiatives

The Indian government has come up with a number of export promotion policies for the textiles sector. It has also allowed 100 percent FDI in the Indian textiles sector under the automatic route.

Initiatives taken by the Government of India are:

• The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry - Readymade garments and Made ups - from 2 percent to 4 percent.
• As of August 2018, the Government of India has increased the basic customs duty to 20 percent from 10 percent on 501 textile products, to boost Make in India and indigenous production.
• The Government of India announced a Special Package to boost exports by US$ 31 billion, create one crore job opportunity and attract investments worth Rs 80,000 crore (US$ 11.93 billion) during 2018-2020. As of August 2018, it generated additional investments worth Rs 25,345 crore (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million).
• The Government of India has taken several measures including Amended Technology Up- gradation Fund Scheme (A-TUFS), the scheme is estimated to create employment for 35 lakh people and enable investments worth Rs 95,000 crore (US$ 14.17 billion) by 2022.
• Integrated Wool Development Programme (IWDP) approved by Government of India to provide support to the wool sector starting from wool rearer to end consumer which aims to enhance the quality and increase the production during 2017-18 and 2019-20.
• The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development scheme named 'Scheme for Capacity Building in Textile Sector (SCBTS)' with an outlay of Rs 1,300 crore (US$ 202.9 million) from 2017-18 to 2019-20.

Achievements

Following are the achievements of the government in the past four years:

• I-ATUFS, a web-based claims monitoring and tracking mechanism was launched on April 21, 2016.
• 381 new block-level clusters were sanctioned.
• 20 new textile parks were sanctioned
• Employment increased to 8.62 million in FY18 from 8.03 in FY15.

Road Ahead

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 rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market.

High economic growth has resulted in higher disposable income. This has led to a rise in demand for products creating a huge domestic market.

Exchange Rate Used: INR 1 = US$ 0.0139 as of Q3 FY19.

References: Ministry of Textiles, Indian Textile Journal, Department of Industrial Policy and Promotion, Press Information Bureau

Note: * till January 2019, ^ - during the cotton season October–September

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Eco Fabric: 14 Strange and Amazing Textile Innovations

Relying on polluting textile materials like cotton and polyester may become a thing of the past as a new range of eco-fabrics emerge, often made from materials that would otherwise go to waste. Some of these environmentally friendly fabrics are already in use, like those made of coconut husks, recycled plastic bottles, wood pulp and corn, while others are strange and futuristic, sourced from hagfish slime, fermented wine, spoiled milk and genetically engineered bacteria.

Fabric from Fermented Wine

A group of scientists at the University of Western Australia has produced fabric by letting microbes go to work on wine. The scientists culture bacteria called Acetobacter in vats of cheap red wine, and the bacteria ferments the alcohol into fibers that float just above the surface. These fibers can be extracted and fashioned into clothing. The only catch? Acetobacter produce vinegar as its end product, so the garments have a definite odor.

Naoron, Durable Fabric Made of Wood Pulp

This leather alternative is not only animal-friendly, it also eschews the chemicals required to create conventional faux leather. Naoran is a water-resistant textile derived from wood pulp and recycled polyester. It’s soft, flexible, and tear- and water-resistant.

Hagfish Slime Thread

The slimy substance in the photo above is defensive goo attached to a hagfish, an eel-shaped bottom-dwelling animal of the deep seas that is the only known creature to have a skull, but no vertebral column. Scientists have discovered that proteins within this slime have mechanical properties rivaling those of spider silk, and can be woven into high-performance bio-materials.

Electroluminescent Garments

For this unusual fabric in a collection by fashion designer Vega Wang, silk was printed with images of constellations and other space-related themes, and then the fabric was lined with electroluminescent paper. Programmed controllers enable the paper to shine through the silk for a dreamy, ethereal effect.

Spider Silk Made from Metabolically Engineered Bacteria

Known for its tremendous strength – three times stronger than both steel and Kevlar, yet thinner than a human hair – spider silk is a highly valuable material for textiles. But farming and harvesting spider silk is a definite challenge. Instead, geneticists have found a way to chemically synthesize the silk gene and insert it into E. coli bacteria.

Ingeo, Fabric Made from Corn

Synthetic fibers are most often petroleum-based, but recycled fibers and those sourced from natural substances are on the rise. Ingeo, a fabric by Natureworks derived from fermented corn starches, can be spun into fibers for apparel and home textiles, and also used for bio-plastics.

Silk-Like Fiber Derived from Spoiled Milk

Few of us would willingly walk around wearing spoiled milk, but it might just become all the rage in the near future. A company called Qmilch makes fabric from protein found in soured ‘secondary milk’ that’s no longer suitable for human consumption, and would normally be thrown away. This zero-waste fabric requires no harmful chemicals to make, and uses less water in the production process than other milk-based fabrics.

Newlife Polyester Yarn Made of Recycled Plastic Bottles

Newlife is a polyester yarn made from 100% post-consumer recycled plastic bottles, which is processed by mechanical rather than chemical means. Made in Italy, the fabric is used in fashion, sportswear, underwear, medical garments and other clothes and furnishings. Georgio Armani used it to create a fashionable, eco-friendly gown for LIvia Firth at the 2012 Golden Globe Awards.

Used Coffee Pods

Inspired by the resourcefulness of locals in Kerala, India, who repurpose waste in surprising ways, designer Rachel Rodwell discovered a material that wasn’t living up to its potential: used coffee pods. Rodwell gathers pods from friends and family and smashes them with a meat tenderizer, reconfiguring them into geometric-inspired designs in colors that reflect India’s cultural aesthetics.

Recycled Newspaper Yarn

Artist Ivano Vitali tears recycled newsprint into strips and twists it into balls of yarn without the use of glue, dyes or silicone, crocheting them into textile art with custom-made wooden knitting needles and hooks as long as 8 feet. Recently, Vitali has expanded into wearable art, achieving certain colors for dresses, jackets and even bikinis by painstakingly sorting his printed materials by color.

Self-Repairing Textile

Once a protective garment like a raincoat or lab wear is ripped or torn, it’s useless. But the total loss of these garments may become a thing of the past with the creation of ‘intelligent’ fabric that can heal itself. Researchers at SINTEF added microcapsules containing a glue-like substance to the plastic polyurethane that is applied to modern rainwear, so that if the garment snags, the capsules release a sealant that fills in the gaps and hardens with contact to air and water.

Cocona, Made of Coconut Husks

It was only a matter of time before tough, fibrous coconut husks were made into durable fabric. Cocona is one trademarked example, made of coconut-husk waste disposed of by the food service industry. The fabric is lightweight and breathable, making it ideal for sportswear. It’s used in Nau’s insular jacket.

Lab-Grown Biological Textiles

How will biotechnology change the fashion industry? Designer Amy Congdon believes that in the future, we’ll be able to grow textiles like ethical fur in laboratories. Her series ‘Biological Atelier’ imagines a workshop, circa 2082, where high-fashion garments are grown from cells.

Recycled Cassette Tapes

All of the strands of cassette tape still floating around in the world could not only be reused for fabrics, but spun into ‘audio textiles’ that play back under a tape head. Artist Alyce Santoro weaves this unlikely material on antique looms in a family-run textile mill in England to produce ‘Sonic Fabric’, including purses made from sound collages based on life in New York City.