Textile Industry and Its Market Growth in India
India’s Textile Industry Growth has made it one of the largest textile sectors worldwide, thanks to its vast base of raw materials and textile manufacturing. As one of the country’s oldest industries, it significantly impacts the economy, contributing to one-third of export revenues, 14% of manufacturing value-added, and providing millions with employment. The textile industry represents over 30% of all exports and 14% of industrial production, making it the second-largest employer after agriculture.
Growth of the Indian Textile Industry
India’s textile industry ranks globally for its significant production of synthetic fibers and yarns. It stands second only to China in cotton fabric and yarn production. The textile and apparel sector is expected to grow at a 10% CAGR, reaching US$ 190 billion by 2025-26. India accounts for 4% of global textile and apparel trade, and as the world’s largest cotton producer, it produced 362.18 lakh bales during the 2021-22 cotton season. Textile and apparel exports, including handicrafts, reached US$ 44.4 billion in FY22, a 41% year-over-year increase. Readymade garment exports reached US$ 6.19 billion in FY22. Additionally, the sector attracted US$ 3.99 billion in FDI from 2000 to 2022.
Advantage – India
India’s textile industry is unique due to its large number of small-scale, non-integrated businesses, which use outdated technologies. In contrast, some larger companies operate in the organized sector, subject to labor and tax regulations. However, most businesses are part of the unorganized sector, where regulations are more lenient. Policy reforms, particularly in the spinning industry, have improved technical efficiency and global competitiveness. India benefits from easy access to labor and raw materials, ranking second in global cotton trade and fourth in polyester yarn production. The industry’s labor-intensive nature provides India with a competitive edge.
Boosting the Indian Economy
The textile industry plays a vital role in India’s economy. It accounts for 20% of industrial production, 9% of excise revenue, 18% of industrial sector employment, over 20% of export earnings, and 4% of GDP. As the second-largest employer, the industry provides jobs for approximately 35 million people. The performance of fiber crops and crafts, such as cotton, wool, silk, handicrafts, and handlooms, supports millions of farmers and artisans in rural areas. The textile industry directly or indirectly impacts one in every six households in India.
Contribution of Sitaram Spinners to the Indian Textile Industry
Sitaram Spinners Private Limited (SSPL) is a prominent name in India’s yarn production sector. As a high-quality core-spun yarn producer, SSPL aims to become a leading provider of premium yarn. Since its inception in 2008, the company has used cutting-edge technology and industry expertise to provide employment to over 2,500 families. SSPL has earned a strong reputation for delivering quality yarn and contributing significantly to India’s textile industry.
The Bright Future
The future of the Indian textile industry looks promising, with strong domestic consumption and export demand. India is launching major initiatives to boost the technical textile sector. The pandemic-driven demand for technical textiles, like PPE suits, has surged, and the government is supporting the industry through funding and machinery sponsorship. Sustainability is a major focus, with many players adopting eco-friendly materials. Rising consumerism and disposable income are propelling growth, with international brands like Marks & Spencer, Guess, and Next entering the market. The industry’s growth will be further fueled by increasing household income, population growth, and demand from housing, hospitality, and healthcare sectors.
