TEXTILE INDUSTRY: SPINS A PROFITABLE STORY

With changing trends and preferences such as the demand for natural fibres, the textile business in India is making its footprint in the modern era by implementing new methods of production and distribution. In this article, Shreya Chaware explains how this will augur well for its steady growth over the years to come.

- Shreya Chaware

In India, the domestic apparel and textile industry comprises approximately 2 per cent of the country’s GDP and 7 per cent of industry output in value terms. The share of textile, apparel and handicrafts in India’s total exports stood at 11.4 per cent in FY21. India contributes 4 per cent share of the global trade in textiles and apparels and is known as one of the largest producers of cotton and jute in the world. Also, India is the second-largest producer of silk in the world where 95 per cent of the world’s hand-woven fabric comes from India. The country is the second-largest garment manufacturer in the world and has a textile industry that dates back centuries and comprises a variety of sectors, including hand-spun and hand-woven, as well as mills.

Approximately 100 million people have been employed by the industry, producing a huge range of goods. Ancient skills and cultural traditions have made the Indian textile industry one of the most distinctive in the world. A considerable decline was seen in the industry as a result of the pandemic. However, as the effect of the pandemic cools down, the textile market is on the verge of recovery and is expected to advance at a CAGR of 10 per cent between 2019 and 2026 to reach USD 190 billion. In 2021, the industry witnessed a surge in the export of cotton, handloom and yarn goods beyond 50 per cent, portraying an upward trajectory for the domain.

Trends in Textile Sector