An Overview of Indian Textile and Clothing Industry
Abstract
The textiles and clothing industry occupies a very important place in the Indian economy in terms of its share in employment, value added and export earnings. The garments sector is undergoing significant expansion in recent years. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020.Recently, Bangladesh has set up two SEZ for attracting Indian companies, and duty free trade between the two countries. The industry attracted FDI, which stood at USD 129 million in FY11. The export ban for cotton in India creates a restriction on textile industry as demand rises for the commodity in China which pushes up the prices, threatening India's textile makers. India’s yarn production growth declines by 8.8% in May 2011. India is considering filing an official complaint against Egypt at the World Trade Organisation for “wrongful’’ imposition of penal duties on cotton yarn imported from the country. The Budget for 2013-14 has given a push for modernisation and expansion of the industry. TEXPROCIL has set up higher cotton textile exports target of 20 per cent in FY14. TEXPROCIL request Cotton Corporation of India (CCI) and NAFED to start selling their large inventory to remove the artificial shortage and restore international price parity which is important to help maintain export momentum. India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India’s exports worldwide.
Keywords: Sez, Texprocil, Textile and Clothing Industry.
The textiles and clothing industry occupies a very important place in the Indian economy in terms of its share in employment, value added and export earnings. The garments sector is undergoing significant expansion in recent years. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020.Recently, Bangladesh has set up two SEZ for attracting Indian companies, and duty free trade between the two countries. The industry attracted FDI, which stood at USD 129 million in FY11. The export ban for cotton in India creates a restriction on textile industry as demand rises for the commodity in China which pushes up the prices, threatening India's textile makers. India’s yarn production growth declines by 8.8% in May 2011. India is considering filing an official complaint against Egypt at the World Trade Organisation for “wrongful’’ imposition of penal duties on cotton yarn imported from the country. The Budget for 2013-14 has given a push for modernisation and expansion of the industry. TEXPROCIL has set up higher cotton textile exports target of 20 per cent in FY14. TEXPROCIL request Cotton Corporation of India (CCI) and NAFED to start selling their large inventory to remove the artificial shortage and restore international price parity which is important to help maintain export momentum. India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India’s exports worldwide.
Keywords: Sez, Texprocil, Textile and Clothing Industry.
