Industry Analysis: Indian Textiles

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Industry Analysis:

Indian Textiles

Industry Segmentation

Simplified Value Chain

Industry Size

The second largest provider of employment after agriculture.

It contributes about :-

14 per cent to industrial production.


4 per cent to the country's gross domestic product (US $55 billion).
17 per cent to the countrys export earnings.

Provides direct employment to over 35 million people: largest


in manufacturing sector.

India earns about 27% of its total foreign exchange through


textile exports.

Installed Capacity

India has to make transition from shuttle looms to shuttle less looms to compete with China.

Production Capacity: Fibre


Largest producer of jute.
2nd largest producer of Cotton.
2nd largest for Silk.
2nd position for cellulosic
fibre/yarn
2nd largest producer of synthetic
fibre/yarn.

Indias Trade in Textiles

Exports: Fibres have higher growth than final products.


Imports: Construe a very small amount as compared to exports.

Indias Share: World Trade

Exports expected
to rise after the
slump in 2007-08
Cotton forms the
largest share of
Indias export
basket.

Country Wise Exports


Indias textile products, including handlooms and handicrafts, are exported to
more than a hundred countries. However, the USA and the EU, account for
about two-third of Indias textiles exports.
Textile Exports - Top 10 countries - $11.4 b

China; 5% Turkey; 4%
Spain ; 5%
Italy; 5%
U S A ; 34%
France; 5%
Bangladesh; 7%
Germany; 10%
U K; 11%

UAE; 13%

Industry and Macro Environment


Politico Legal Factors

Major reforms policy initiatives

Indian Textile Policy, 2000

National Jute Policy, 2005

Industry and Macro Environment


contd

Demographic

Socio Cultural

Economic

Natural

Technological

SWOT Analysis

Industry Forecasts

The textile industry is expected to reach a market size of US$ 115


billion by the end of the Eleventh Five Year Plan [2007-12],
comprising of US$ 55 billion of exports and US$ 60 billion of domestic
market.
Total CAGR = 15%
Exports CAGR = 22%
Domestic CAGR = 11%

Q & As

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