PREPARATION

ON TEXTILE
BUSINESS
FABRIC SCIENCE

Submitted by:
▪ Aishwarya Gupta

NIFT Gandhinagar
BFtech Batch: 2021-25
Fabric Science
Introduction

The textile industry is primarily concerned with

the design, production and distribution
of yarn, cloth and clothing. The raw material may
be natural, or synthetic using products of
the chemical industry. The Indian textile and
+
apparel industry is highly diversified with a wide
range of segments ranging from products of
traditional handloom, handicrafts, wool, and silk
products to the organized textile industry in
India. The organized textile industry in India is
characterized by the use of capital-intensive
technology for the mass production of textile
products and includes spinning, weaving,
processing, and apparel manufacturing.
 Indian Textile Industry
Structure And Growth
India’s textile industry is one of the economy’s
largest. In 2000/01, the textile and garment
industries accounted for about 4 percent of
GDP, 14 percent of industrial output, 18
percent of industrial employment, and 27
percent of export earnings (Hashim).
India’s textile industry is also significant in a
global context, ranking second to China in the
production of both cotton yarn and fabric and
fifth in the production of synthetic fibers and
yarns. In contrast to other major textile-
producing countries, mostly mostly small-
scale, nonintegrated spinning, weaving, cloth
finishing, and apparel enterprises, many of
which use outdated technology, characterize
India’s textile sector.
Structure Of India’s Textile
Industry
Spinning. Spinning is the process of converting
cotton or manmade fibre into yarn to be used for
weaving and knitting. Largely due to deregulation
beginning in the mid-1980s, spinning is the most
consolidated and technically efficient sector in
India’s textile industry.
Weaving and Knitting Weaving and knitting
converts cotton, manmade, or blended yarns into
woven or knitted fabrics. India’s weaving and
knitting sector remains highly fragmented, small-
scale, and labour-intensive.

Fabric Finishing Fabric finishing (also referred to

as processing), which includes dyeing, printing,
and other cloth preparation prior to the
manufacture of clothing, is also dominated by a
large number of independent, small scale
enterprises.

Clothing Apparel is produced by about 77,000

small-scale units classified as domestic
manufacturers, manufacturer exporters, and
fabricators (subcontractors).
Role Of Indian Textile
Industry In The Economy
Textile industry plays a significant role in the
economy. The Indian textile industry is one of the
largest and most important sectors in the
economy in terms of output, foreign exchange
earnings and employment in India. It contributes
20 per cent of industrial production, 9 per cent of
excise collections, 18 per cent of employment in
industrial sector, nearly 20 per cent to the
country’s total export earnings and 4 per cent ton
the GDP.
The sector employs nearly 35 million people and
is the second highest employer in the country.
The textile sector also has a direct link with the
rural economy and performance of major fibre
crops and crafts such as cotton, wool, silk,
handicrafts and handlooms, which employ
millions of farmers and crafts persons in rural and
semi-urban areas. India has several advantages in
the textile sector, including abundant availability
of raw material and labour.
 Market Size
• India’s textiles industry contributed 7% to the
industry output (by value) in 2018-19. The
Indian textiles and apparel industry
contributed 2% to the GDP, 12% to export
earnings and held 5% of the global trade in
textiles and apparel in 2018-19.
• The share of the India’s textiles and apparel
exports in mercantile shipments was 11% in
2019-20.
• Textiles industry has around 4.5 crore
employed workers including 35.22 lakh
handloom workers across the country.
• Cotton production is expected to reach 37.10
million bales and consumption is expected to
reach 114 million bales in FY21—13% growth
over the previous year.
• The domestic textiles and apparel market
stood at an estimated US$ 100 billion in FY19.
• In July 2021, exports of cotton
yarn/fabrics/made-ups, handloom products,
etc., from India increased by 50.86% in June
2021 over June 2019.
 Growth Of Textile Industry
• India has already completed more than 50
years of its independence. The analysis of
the growth pattern of different segment of
the industry during the last five decades of
post independence era reveals that the
growth of the industry during the first two
decades after the independence had been
gradual, though lower and growth had been
considerably slower during the third
decade. The growth thereafter picked up
significantly during the fourth decade in
each and every segment of the industry.
• The peak level of its growth has however
been reached during the fifth decade i.e.,
the last ten years and more particularly in
the 90s. The Textile Policy of 1985 and
Economic Policy of 1991 focussing in the
direction of liberalisation of economy and
trade had in fact accelerated the growth in
1990s. The spinning spearheaded the
growth during this period and man-made
fibre industry in the organised sector and
decentralised weaving sector.
 The Key Advantages Of The
Indian Industry Are:
• India is the third largest producer of cotton with
the largest area under cotton cultivation in the
world. It has an edge in low cost cotton sourcing
compared to other countries.
• Average wage rates in India are 50-60 per cent
lower than that in developed countries, thus
enabling India to benefit from global outsourcing
trends in labour intensive businesses such as
garments and home textiles.
Design and fashion capabilities are key strengths
that will enable Indian players to strengthen their
relationships with global retailers and score over
their Chinese competitors.
• Production facilities are available across the
textile value chain, from spinning to garments
manufacturing. The industry is investing in
technology and increasing its capacities which
should prove a major asset in the years to come.
• Large Indian players such as Arvind Mills,
Welspun India, Alok Industries and Raymonds
have established themselves as 'quality
producers' in the global market. This recognition
would further enable India to leverage its position
among global retailers.
 The Government Initiatives

❖ With a view to raise India's share in the global

textiles trade to 10 per cent by 2015 (from the
current 3 per cent), the Ministry of Textiles
proposes 50 new textile parks. Out of the 50, 30
have been already sanctioned by the government
(with a cost of US$ 710 million). Set up under the
Scheme for Integrated Textile Parks (SITP), this
initiative will not only make the industry cost
competitive, but will also enhance manufacturing
capacity in the sector.
❖ Apart from the above, a series of progressive
measures have been planned to strengthen the
textile sector in India:
• Technology Mission on Cotton (TMC)
• Technology Upgradation fund Scheme (TUFS)
• Setting up of Apparel Training and Design
Centres (ATDCs)
• 100 per cent Foreign Direct Investment (FDI) in
the textile sector under automatic route.
• Setting up two design centres in Gujarat in
collaboration with National Institute of Fashion
Technology.
 Global Scenario
❖ China, the largest T&A
exporter, accounted for
36% of the total T&A
exports. However, China’s
share in global T&A trade
has decreased from 39% in
2015 to 36% in 2017.
❖ One of the major reasons
for the decline is the
increasing attraction of
China’s domestic textile and
apparel market.
❖ India was the second
largest T&A exporter with
exports worth US$ 37
billion, followed by
Bangladesh and Germany
with trade worth US$ 35
billion and US$ 34 billion,
respectively.
Export Scenario
❖ India’s T&A exports
reached US$ 33.5 billion
in 2019-20.
❖ Due to the impact of
Covid-19, India’s T&A
exports are expected to
fall around 15% to reach
US$ 28.4 billion in 2020-
21.
❖ India’s exports of T&A
are expected to grow to
US$ 65 billion by 2025-
26, growing at a CAGR
of 11%.
❖ Apparel is the largest
exported category with
a share of 46% in the
textile and apparel
exports.
Import Scenario
❖ India‘s textile and apparel
imports in 2018-19 are
estimated at US$ 7.5
billion. The imports of
textile and apparel have
grown 8% CAGR from
2005-06 to 2017-18. The
year 2017-18 witnessed
the peak imports of US$ 7
billion.
❖ Fabric imports of India in
2018-19 are expected to
be worth US$ 2.5 billion,
making it the largest
imported category by
India.
❖ The imports of T&A are
expected to grow at a
CAGR of approx.
❖ 10% to reach US$ 15.2
billion by 2025-26.
INDIAN TEXTILE INDUSTRY – SWOT
ANALYSIS
 STRENGHTH
• Nation’s textile industry has potential to double its rise in the next 7 years; China
is losing advantage in textile because of rising power costs, labour costs and focus
on domestic market

• Major exporting countries like Bangladesh are also facing geopolitical issue.

• Country’s major costs such as cotton, yarn, power, wages, dyes and chemicals are
internationally competitive

• Make in India campaign covering 25 sectors including the textile and garment
industry has been launched

• The TUFS scheme aims at making available funds to the domestic textile industry
for technology up-gradation and setting up of new units

• Scheme aims to generate 11.5 % annual growth in volume terms in cloth

production and 15% in value exports by increasing domestic value addition and
technological depth and enhancing global competitiveness
 WEAKNESS

• Preferential tax regime whereby the textile sector has not received its due under
the FTP despite being one of the biggest job providers in the nation

• Huge tariff barriers are faced by the industry on account of preferential tariff
arrangements

• Duty sops of only 2% were given to mainstream cotton textile products, whereas
higher rates were given for handlooms, carpets, coir products under the
merchandise exports from India scheme (MEIS)

• Man made textile industry that is highly capital intensive and can attract FDI has
been discriminated against through the cotton industry; liberal MEIS benefit under
FTP has not been granted to this sector

• MMF textiles generate INR 7000 crore as taxes and are suited to the new FTP
scheme; these products have been given lower incentives compared to cotton
textiles
 OPPURTUNITY

• The Indian technical textiles market is expected to expand to US$ 23.3 billion by
2027, driven by increased awareness of goods and higher disposable incomes.
Additionally, the pandemic has led to increased demand for technical textiles in
the form of PPE suits and equipment.

• The major growth drivers of the global apparel market will be the developing
economies, mainly China and India, both growing in double digits.

• The highest contributors to FDI in the Textile sector of India (including

dyed, printed) from April 2016 to March 2021 are Japan, Mauritius, Italy,
and Belgium.

• India will be the second most attractive apparel market adding around US $121
bn. by 2025, India has a share of approximately 5% of the global textile and
apparel trade.
 THREATS
• Decreasing Fashion Cycle
There has been an increase in seasons per year which has resulted in shortening of
the fashion cycle.

• Formation of Trading Blocks

Formation of trading blocks like NAFTA, SAPTA, etc; has resulted in a change in the
world trade scenario. Existence of bilateral agreements would result in significant
disadvantage for Indian exports.

• Phasing out of Quotas

India will have to open its protected domestic market for foreign players thus
domestic market will suffer.

• Geographical Distance
India is its geographical distance from major global markets of US, Europe and
Japan in contrast to its rivals like Mexico, China etc which are comparatively nearer.
Big geographical distance results in high shipping expenses and lengthy lead-time.
 CONCLUSION
The Indian textile industry requires support from both the Central and State
governments to become competitive in the Global market.
It is high time for the textile industry to upgrade their technology and
implement ERP to streamline supply chain and enhance customer relations
management activities. These measures are enabling the industry in
becoming competitive in the global market. The future for the Indian textile
industry looks promising, buoyed by both strong domestic consumption as
well as export demand. With consumerism and disposable income on the
rise, the retail sector has experienced a rapid growth in the last decade with
the entry of several international players like Marks & Spencer, Guess and
Next into the Indian market.
The Indian cotton textile industry is expected to showcase a stable growth in
FY2017-18, supported by stable input prices, healthy capacity utilization and
steady domestic demand.
 REFERENCE
▪ https://www.fibre2fashion.com/industry-article/2363/indian-textile-industry-an-overview
▪ https://www.ibef.org/industry/textiles.aspx
▪ https://aepcindia.com/system/files/Annual%20T%20and%20A%20Industry%20Report-2021.pdf
▪ https://wazir.in/pdf/Wazir_Annual%20Report_Textiles_Soft%20Copy.pdf
▪ https://www.careerride.com/view/strengths-and-weaknesses-of-indian-textile-sector-22905.aspx
▪ https://crimsonpublishers.com/tteft/fulltext/TTEFT.000538.php
▪ https://blogs.siliconindia.com/rohitkantprasad/SWOT_analysis_of_Indian_Apparel_Textile_Industry-
bid-nMHxN50t11848596.html
THANK YOU