Textile industry in India
The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour in textiles. The textile industry continues to be the second-largest employment generating sector in India. It offers direct employment to over 35 million in the country. The share of textiles in total exports was 11.04% during April–July 2010, as per the Ministry of Textiles. During 2009–2010, the Indian textile industry was pegged at US$55 billion, 64% of which services domestic demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of India. According to AT Kearney’s ‘Retail Apparel Index’, India was ranked as the fourth most promising market for apparel retailers in 2009.
India is first in global jute production and shares 63% of the global textile and garment market. India is second in global textile manufacturing and also second in silk and cotton production. 100% FDI is allowed via automatic route in textile sector. Rieter, Trutzschler, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks & Spencer, Zara, Promod, Benetton, and Levi’s are some of the foreign textile companies invested or working in India.
The archaeological surveys and studies have found that the people of Harrapan civilization knew weaving and the spinning of cotton four thousand years ago. Reference to weaving and spinning materials is found in the Vedic Literature. There was textile trade in India during the early centuries. A block printed and resist-dyed fabrics, whose origin is from Gujarat is found in tombs of Fostat, Egypt. This proves that Indian export of cotton textiles to the Egypt or the Nile Civilization in medieval times were to a large extent. Large quantity of north Indian silk were traded through the silk route in China  to the western countries. The Indian silk were often exchanged with the western countries for their spices in the barter system. During the late 17th and 18th century there were large export of the Indian cotton to the western countries to meet the need of the European industries during industrial revolution. Consequently, there was development of nationalist movement like the famous Swadeshi movement which was headed by the Aurobindo Ghosh.
India is the second largest producer of fibre in the world and the major fibre produced is cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of the Indian textile Industry is cotton based. The strong domestic demand and the revival of the Economic markets by 2009 has led to huge growth of the Indian textile industry. In December 2010, the domestic cotton price was up by 50% as compared to the December 2009 prices. The causes behind high cotton price are due to the floods in Pakistan and China . India projected a high production of textile (325 lakh bales for 2010 -11). There has been increase in India's share of global textile trading to seven percent in five years. The rising prices are the major concern of the domestic producers of the country.
- Man Made Fibres: This includes manufacturing of clothes using fibre or filament synthetic yarns. It is produced in the large power loom factories. They account for the largest sector of the textile production in India.This sector has a share of 62% of the India's total production and provides employment to about 4.8 million people.
- The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It provides employment to huge amount of people but its productions and employment is seasonal depending upon the seasonal nature of the production.
- The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their funds. Its market share is 13%. of the total cloth produced in India.
- The Woolen Sector: India is the 7th largest producer. of the wool in the world. India also produces 1.8% of the world's total wool.
- The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern states of India like Assam and West Bengal. India is the largest producer of jute in the world.
- The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world. India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main types of silk produced in the country. It is a labor-intensive sector.
In the early years, the cotton textile industry was concentrated in the cotton growing belt of Maharashtra and Gujarat. Availability of raw materials, market, transport, labour, moist climate and other factors contributed to localisation. In the early twentieth century, this industry played a huge role in Bombay's economy but soon declined after independence. While spinning continues to be centralised in Maharashtra, Gujarat and Tamil Nadu, weaving is highly decentralised. As of 30 September 2013, there are 1962 cotton textile mills in India, of which about 80% are in the private sector and the rest in the public and cooperative sector. Apart from these, there are several thousand small factories with four to ten looms.
India exports yarn to Japan, United States, United Kingdom, Russia, France, Nepal, Singapore, Sri Lanka and other countries. India has the second-largest installed capacity of spindles in the world, with 43.13 million spindles (30 March 2011) after China. Although India has a large share in world trade of cotton yarn, its trade in garments is only 4% of the world's total. This is due to the incompetency of local spinning and weaving mills to process yarn. There exist some large factories, but most of the production is fragmented in small units, which cater to the local market. This mismatch is a major drawback for the industry. As a result, many of the spinners export yarn while apparel and garment manufacturers have to import fabric. The power supply is erratic and machinery is outdated and needs to be upgraded. Other problems include low output of labour and stiff competition with the synthetic fibre industry.
India is the largest producer of raw jute and jute goods and the second largest exporter after Bangladesh. There were about 80 jute mills in India in 2010-11, most of which are located in West Bengal, mainly along the banks of the Hooghly River, in a narrow belt (98 km long and 3 km wide). Factors responsible for their location in the Hooghly basin are: inexpensive water transport, good network of railways, roadways and waterways to facilitate movement of raw material to mills, abundant water supply, cheap labour from neighbouring states.
In 2010-2011 the jute industry was supporting 0.37 million workers directly and another 400,000 small and marginal farmers who were engaged in the cultivation of jute.
Challenges faced by the industry include stiff competition in the international market from synthetic substitutes and from other countries such as Bangladesh, Brazil, Philippines, Egypt and Thailand. However, the internal demand has been on the rise due to Government policy of mandatory use of jute packaging. To stimulate demand, the products need to be diversified. In 2005, the National Jute Policy was formulated with the objective of improving quality, increasing productivity an enhancing the yield of the crop.
Ministry of textiles and organizations
Government of India passed the National Textile Policy in 2000. The major functions of the ministry of textiles are formulating policy and coordination of man-made fiber, cotton, jute, silk, wool industries, decentralization of power loom sector, promotion of exports, planning & economic analysis, finance and promoting use of information technology. The advisory boards for the ministry include All India Handlooms Board, All India Handicrafts Board, All India Power looms Board, Advisory Committee under Handlooms Reservation of Articles for Production and Co-ordination Council of Textiles Research Association. There are several public sector units and textile research associations across the country.
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