India is the world's second largest producer of textiles and clothing and the world's third largest producer of cotton after China and the USA. The market is also the second largest in terms of ingestion of Cotton, following China.
Among the oldest and the greatest textile businesses in the world, the Indian textile industry is currently estimated at US$150 Billion at December 2018 and is expected to reach US$ 250 Billion by the year 2019. The textiles industry, carrying hand-woven and hand-spun textile businesses at the same end of funding intensive mills sector that is sophisticated and this spectrum is diverse and huge. The textile industry contributed 7% of the Indian industry output in the year 2017-2018. Known to function as the fifth employment generating sector in the country, the textile industry provides employment and contributes to two percent of the GDP of the country. The financial year 2018 took the Indian textile exports into US$ 39.20. The growth in building and construction is expected to boost the demand for non-clothing textiles. After factors work as the strengths of the textile industry- The remarkable increase in the income levels of the Indian inhabitants Abundant availability of raw materials such as cotton, wool, silk, and jute Create a constant increase in the demand from the Indian textile industry Easy access to low cost and skilled work offering a competitive advantage to the industry Better assistance in terms of building market entry plan for global organization from the management consulting firms in India The fundamental strength of the Indian textile industry is its powerful production base with a large range of fibers and yarns. These are organic fibers like cotton, silk, jute, silk, wool, man-made fibers such as polyester, viscose, nylon, and acrylic and and synthetic. The textile industry is funding and, computers that are similar with automobiles, aircraft, and machinery industry. Value chains improve industrialization, which have become common in labor-intensive industries and consumer electronics. In comparison with other nations like China, the price of textile production in India is quite less. Due to this, the textile manufacturers and silk weaving have dropped the competitive advantage of reduced cost of manufacturing. This provided an chance to the Indian textile sector to overtake the market share of China from the developed world, particularly in the European Union and the United States, both comprising of around 60% of the export market. Contemplating this, the Indian government took certain steps to further improve the Indian textile industry and promote mergers and acquisitions in India. A few of the major investments in the Indian textiles industry are below- 100 percent Foreign Direct Investment has been allowed from the Indian Textile industry. Moreover, free trade with ASEAN is permitted in order to increase exports from the nation. The Indian government is making huge investments under the Scheme for Integrated Textile Parks (SITP) and Technology Upgradation Fund Scheme to encourage more private equity in order to train the workforce. The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development strategy for capacity building in the textile industry with an outlay of US$ 202.9 Million from 2017-18 to 2019-20. The Future Group is likely to open 80 new stores under its cheap fashion format, FBB and is targeting the earnings of 230 million units of clothing by March 2018, This amount is further expected to grow to 800 Million units by the year 2021. Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 shops in 120 cities by investing in the US $60 Million in the subsequent 4 decades. To conclude, programs like Skill India and Make-in-India, along with constant development and growth in the management consulting companies in India for foreign companies, is operating in favor of the developments in the Indian textile industry. The access to expert workforce and a good market for textile goods, the industry is getting competitive in the global market. With proper market entry strategy for giants on the market, the near future for the Indian textile industry looks promising, typified by both powerful consumption and export demand. Source: cotton fabric manufacturers in surat
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October 2019
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