Expected to create 35 million jobsand fetch $200 billion of investments
At just 5.2 per cent share of global trade, the Indian textile industry ranks second in the world, far behind China. Help is at hand though, with China’s share in the global textile trade expected to go down by five per cent. While this would push up India’s exports to $185 billion, a new report has noted that the domestic apparel market is also likely to grow by 4.5 times in the interim.
The Indian textile industry is poised to cross $500 billion by 2025, and the share of its textile industry in global trade could increase to 10 per cent, an international study by research firms Wazir Advisors and PCI Xylenes and Polyesters has noted.
If the Indian textile industry takes the right steps and gets adequate policy support from the government, it could add another $400 billion by 2025 to its present size of $108 billion. This would also catalyse another 35 million jobs and $200 billion of investments, noted the study.
The report stated that the Indian industry needs to shift its fibre mix towards polyester fibre from cotton as the fibre mix in India is tilted towards cotton (at 55 per cent), while the fibre consumption of the world is tilted towards polyester (at 50 per cent).
India’s domestic market is also consuming more man-made fibre-based products. As cotton prices keep fluctuating unpredictably, global brands are setting up shops and private labels are gaining prominence in organised retail, according to the study.
Asking the Indian government to support the textile industry by adopting several measures, the study has detailed major initiatives like an immediate Goods and Services Tax implementation to remove the differential tax treatment to manmade fibres; creation of mega textile park; single window system for FDI (Foreign Direct Investment) specific to textiles; labour law reforms, extension of loan period in case of TUFS (Textile Upgradation Finance Schemes), and research and development in promotion schemes. The study has said that the implementation of these would help attract investment and innovation. Business Line
