EXPLORING OPPORTUNITIES IN THE INDIAN TEXTILE INDUSTRY:

HEIGHTENING AWARENESS

Dr. Chandraveer Singh

Assistant Professor, Dept. of Commerce, Ramabai Ambedkar Govt. Degree
College, Gajraula, Amroha (U.P.)

Abstract - India's portion of the worldwide material industry is supposed to

develop from 4% to 7% by 2011-12 and the portion of clothing in the
commodity bin is supposed to increment from 48% to 60%. A Vision 2010
for textiles, developed by the government in response to extensive
consultation with the industry and Export Promotion Councils, aims to
increase India's share of global textile trade from 4% to 8% by 2010 and
achieve export value of $50 billion in 2010. All segments have their own
place, but cotton textiles still hold the majority with a 73% share today.
These technical textiles are a new industry that holds great promise for the
Indian textiles industry and has the potential to reach a size of US $ 127
billion in 2010. India's textile industry contributes 9% of GDP and 35% of
foreign exchange earnings, but its share of global exports is only 3%,
compared to China's 13.75%. To understand India's position in comparison
to other textile producers, Design, quality, and, most importantly,
merchandising are the most important universal parameters that the
majority of Indian consumers seek. Development in item plan and texture
determination, are imperative components that add to esteem discernment
for an item. According to a World Bank study that looked at 181 economies,
India's ranking on various indicators of charisma as a business destination
has slightly improved since 2009. However, the ranking remains quite low
overall. Essentially, India is positioned a decent 33 on the restriction of
safeguarding the interests of the financial backers. Special economic zones
(SEZs) and export processing zones (EPZs) can be established under the
EXIM policy. Units in the EPZs that trade all of their result can import
modern data sources liberated from customs obligation. Seeing commodity
shares, Korea (6%) and Taiwan (5.5%) are in front of India, while Turkey
(2.9%) has previously up to speed and others like Thailand (2.3%) and
Indonesia (2%) are not a lot further behind.
Keywords: Material Industry, India, Strength, Contenders, Likely open
doors.

1 INTRODUCTION
By 2011-12, India's share of the global textile industry is expected to rise
from 4% to 7%, and the export basket's apparel share is expected to rise
from 48% to 60%. India is the third largest cotton producer in the world and
produces 15% of the world's cotton crop. It also has a large fiber base. India
produces a wide range of cotton, giving domestic textile manufacturers
operational flexibility. India is the third-largest producer of cellulosic fibers
and filament yarns and the fifth-largest producer of polyester fibers and
filament yarns worldwide. India is capable of producing a wide range of
textiles and is the world's second-largest textile manufacturer (after China).
The spinning industry accounts for approximately 20% of all cotton yarn
exports worldwide and is competitive and moderately modernized. The
textile industry in India is heavily dependent on cotton grown in the
country. Close to 66% of homegrown cotton creation is downpour taken care
of, which brings about wide climate related vacillations in cotton creation. In
addition, Indian cotton has one of the highest levels of contamination in the
world.

2 RECENT TRENDS
The Indian textile industry stated that the phase-out of the Multi-Fiber
Arrangement (MFA) quota system is positive, with new investment coming in
and increased orders for the industry. As a result, capacities are fully
booked through April 2005. In the past five years, the textile industry has
received new investments totaling Rs. 500 billion as a result of a variety of
government initiatives. Nine major textile companies put in Rs. 26 billion
and plan to put in another Rs. 64 billion. In addition, cotton production in
India increased by 57% over the previous five years; as well as the
installation of 30,000 shuttle-less looms and three million additional
spindles. In the phase following the MFA, the industry anticipates investing
Rs. 1,400 billion in this sector. A Vision 2010 for textiles, developed by the
government in response to intensive consultation with the industry and
Export Promotion Councils, aims to increase India's share of global textile
trade from the current 4% to 8% by 2010 and achieve export value of US$50
billion in 2010. The Indian textile industry's current value of $ 37 billion is
projected to rise to $ 85 billion by 2010, according to Vision 2010 for
textiles. Establishment of 12 million new textile jobs; what's more,
modernization and combination for making an internationally cutthroat
material industry. The arrival in India of expatriate and western designers
(from France, Italy, and the UK) who are beginning to establish joint
ventures with Indian designers in order to serve domestic and export
markets is a recent trend. Italian organizations are putting resources into
limit extension and striking assembling, circulation and diversifying
manages India Inc. Carrera is to put US$ 252.7 million in material activities
in India.

3 TEXTILE EXPORTS
India's export earnings are significantly supported by the textile industry.
The items in the export basket range from cotton yarn and fabrics to man-
made yarn and fabrics to wool and silk fabrics to made-ups and a variety of
clothing. Handicrafts and textiles from India, including handlooms, are
exported to over 100 nations. However, the majority of our textile goods are
imported from the United States, Canada, the United Arab Emirates, Japan,
Saudi Arabia, the Republic of Korea, Bangladesh, Turkey, and other nations.
Handicrafts, jute, and coir accounted for 16.63 percent of India's total
exports between 2005 and 2006. The post-quota period has seen solid
growth in India's textile exports.

4 STRUCTURE OF INDIA’S TEXTILE INDUSTRY

The material area in India is one of the universes biggest. The material
business today is partitioned into three sections:
1. Textiles made of cotton
2. Manufactured Materials
3. Other like Fleece, Jute, Silk and so on.
All segments have their own place, but cotton textiles still hold the
majority with a 73% share today. The structure of the cotton textile industry
is very complex because the oldest hand spinning and hand weaving
technologies coexist with the most advanced automatic spindles and looms.
The construction of the material business is hugely perplexing with the
cutting edge, complex and exceptionally motorized factory area on the one
endlessly hand turning and hand winding around (handloom area) on the in
the middle between falls the decentralized limited scope power loom area.

5 LOCALIZATION OF THE INDUSTRY:

Northern India: Jaipur, Jodhpur (Rajasthan), Ludhiana (Punjab), Delhi,
Kanpur (U.P.)
Western India: Solapur (Maharashtra)
South India: Bangalore (Karnataka), Coimbatore, Erode, Salem and
Tiruchirapalli (Tamil Nadu)

6 OPPORTUNITIES IN THE INDIAN TEXTILE INDUSTRY:

The textile industry is undergoing a significant reorientation toward non-
clothing textile applications, also known as technical textiles, such as
materials that absorb blood and provide thermal protection. seatbelts;
adhesive tape, in addition to numerous other specialized products and
services. These technical textiles are a new industry that holds great
promise for the Indian textiles industry and has the potential to reach a size
of US $ 127 billion in 2010.

7 ROLE OF TEXTILE INDUSTRY IN INDIA GDP

India's GDP has increased significantly as a result of the global trade in
clothing and textiles, which has generated a significant amount of revenue
for the nation. India's textile industry has experienced a significant
expansion over the past year. From USD 37 billion in 2004-05 to USD 49
billion in 2006-07, the industry has grown. The local market expanded by
USD 7 billion during this time, from USD 23 billion to USD 30 billion.
During the same time, the export market increased from USD 14 billion to
USD 19 billion. One of the most important parts of the Indian economy is
the textile industry, which makes up about 14% of all industrial production.
It is said that among all of India's industrial sectors, the textile industry
generates the most foreign exchange revenue. One of the most beneficial
industrial sectors in the nation is this one, which employs approximately 35
million people.

8 FAVORABLE DEMAND CONDITIONS IN TEXTILE INDUSTRY

India has a variety of demographic trends, including an increase in
consumer awareness, spending, and disposable income. The Consuming
Class, defined by NCAER data as having a yearly income of at least US$
980, is growing and is anticipated to account for more than 80% of the
population by 2009-2010. A shift in consumer mindset has resulted in a
tendency to spend more on branded goods as well as personal care and
lifestyle products. Companies in the textiles industry, as well as those
operating in other industries, stand to benefit greatly from these trends.
India's retail sector is undergoing a revolution that is bolstering the rising
demand for utilization. With the rapid expansion of supermarkets, malls,
theme stores, and franchises throughout urban India, organized retail is
unstoppable in shaping the domestic market in India. As a result, India is a
huge, thriving market for apparel and textiles that has the potential for
sustained expansion.

9 INDIA’S VISION ON TEXTILES

• Textile economy to grow to $ 85 bn.
• Creation of 12 million new jobs in Textile Sector.
• To increase India’s share in world trade to 6%.
• Achieve export value of $ 40 Billion.
• Innovation and consolidation for creating a globally viable industry.

10 INDIA’S MAJOR COMPETITORS IN THE WORLD

India's textile industry contributes 9% of GDP and 35% of foreign exchange
earnings, but its share of global exports is only 3%, compared to China's
13.75%. To understand India's position in comparison to other textile
producers, India faces serious competitive threats from other developing
nations in addition to China. Seeing commodity shares, Korea (6%) and
Taiwan (5.5%) are in front of India, while Turkey (2.9%) has previously up to
speed and others like Thailand (2.3%) and Indonesia (2%) are not a lot
further behind. The justification for this advancement is the way that India
lingers behind these nations in speculation levels, innovation, quality and
coordinated factors. India could serve as a foundation for building a modern
industry if it were competitive in some key segments; however, there is no
evidence of this, with the exception of the spinning industry, which is
somewhat competitive.

10.1 Preferences of Textile Brands

Brand building is an astonishing errand which includes high speculation on
creation foundation, innovation up-degree and tremendous merchandizing.
This has propelled less popular medium estimated players who are
attempting to make their items in the market through production of brands.
There is serious areas of strength for a that Indian market will have
enormous various brands in not so distant future considering market
extension and expanding contest. Inclination for demanding clothing brands
relies upon individual preferences and inclinations. The majority of Indian
consumers look for universal criteria like design, quality, and most
importantly, merchandising. Innovation in product design and fabric
selection are essential components that enhance a product's value
perception. Deals limits additionally will generally influence the buy choices
of purchasers gave the least boundaries/highlights are not compromised
with.

11 EXPORT PROCESSING AND SPECIAL ECONOMIC ZONES

Special economic zones (SEZs) and export processing zones (EPZs) can be
established under the EXIM policy. Industrial inputs are exempt from
customs duty for EPZ units that export all of their output. Any industrial
unit in an EPZ is eligible for a five-year tax break, and all profits of 100%
EOUs are exempt from income tax. Only their export earnings are exempt
from tax for 66 Units that are not 100% EOUs. To draw in speculation, the
GOI permits 100% unfamiliar responsibility for in the EPZs as well as the
SEZs. Four EPZs were recently converted into SEZs, resulting in the
creation of the SEZs. For the purposes of trade and tariffs, the GOI
considers SEZs to be foreign territory. SEZ units may engage in services,
trading, and manufacturing; are excluded from routine assessment of
products by customs; also, can sell in the homegrown market on installment
of obligation as relevant to imported merchandise.

12 FOREIGN COLLABORATIONS
There are two primary reasons why the Indian market has attracted foreign
businesses. First, it has one of the largest global markets. Over the years,
the premium and super premium market has seen a significant rise in
consumption, making it a major area of interest for foreign players. Second,
for exports to third countries, foreign companies use India as a low-cost
production base. According to a World Bank study that looked at 181
economies, India's ranking on various indicators of a pleasant appearance
as a place to do business has slightly improved since 2009. However, the
ranking remains quite low overall. Importantly, India receives a respectable
33 on the restriction regarding investor protection.
Cotton, jute, silk, wool, polyester, polyamide, acrylic, and viscose are
just a few of the natural and synthetic fibers that India produces. It has the
ability to change these filaments into completed esteem added material
items from start to finish ginning, staggering, turning, winding around,
coloring, printing, getting done and article of clothing producing offices.
India has likewise made significant development in the assembling of
material hardware and the creation of material colors and synthetic
compounds. The export report for India from 2004 to 2009 is shown in the
following figure.

13 CONCLUSION
India is the second prime material industry on the planet after China. India
is the world's fourth - biggest monetary framework, the third - biggest in
Asia and the second biggest among promising countries. The Indian market
reflects critical variety in pay levels and ways of life. India's per-capita Gross
domestic product is quite possibly of the least between the emerging nation,
a huge division of the populace has broadly higher pay. The Indian Material
Industry has a colossal presence in the financial existence of the country.
The textile industry not only supplies one of life's basic necessities, cloth,
but it also contributes 14% to the country's industrial output and about
17% to export earnings. After agriculture, this industry employs 35 million
people and employs the most people in India.

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