Textile Industry in India: Institutional Mechanism for Textiles Sector (Important) (Download PDF)

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Ministry of Textiles set up institutional mechanisms to enable textile industry achieve full potential of production, exports and employment. To implement key recommendations emerging from the deliberations at Textiles India Ministry of Textiles set up the following institutional mechanisms:

Image of Textile Industry in India

Image of Textile Industry in India

Image of Textile Industry in India

Knowledge Network Management System on Product Diversification

  • Steering Committee to oversee implementation of a KnowledgeNetwork Management System (KNMS) facilitating exchange of knowledge amongst academia, farming community, and industry on the productivity of natural fibres and diversification of their by-products.
  • The KNMS would cover jute, silk, wool, and cotton.

Inter-Ministerial Synergy Group on Man-Made Fibre (MMF)

An Inter-Ministerial Synergy Group on Man-Made Fibre (MMF) set up under the Chairmanship of Secretary, Textiles will formulate policy interventions to enhance growth and competitiveness of MMF industry in India.

Task Force on Textiles India

A Task Force on Textiles India will steer follow-up action on various outcomes of Textiles India 2017 for growth of the textiles sector.

About Textiles India

  • Textiles India 2017, held at Gandhinagar, Gujarat from 30th June 2017 to 2nd July 2017,
  • Largest ever international trade event in Textile Sector
  • Hosted a series of roundtables (26) and international conferences with participation of eminent persons from the business fraternity, academia and policy makers

Textile Industry in India

  • India’s textiles sector one of the oldest in Indian economy dating back several centuries.
  • One of the largest contributors to India’s exports with approximately 15 per cent of total exports.
  • Labour intensive and is one of the largest employers- employs about 51 million people directly and 68 million people indirectly
  • Includes hand-spun and hand-woven textiles sectors and also capital intensive sophisticated mills sector. Decentralised power looms and hosiery and knitting sector form the largest component of the textiles sector.

Segments

  • Unorganized sector consists of handloom, handicrafts and sericulture operated on a small scale and through traditional tools and methods.
  • Organized sector consisting of spinning, apparel and garments segment applying modern machinery and techniques receiving economies of scale.

Market Size

  • Estimated at around US $120 billion, is expected to reach US $230 billion by 2020.
  • Contributes approximately 4 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production
  • Indian khadi products sales increased by 33 per cent year-on-year to Rs. 2, 005 crore (US $311.31 million) in 2016 - 17 and expected to exceed Rs. 5, 000 crore (US $776.33 million) sales target for 2018 - 19 (per the Khadi and Village Industries Commission- KVIC).
  • Total area under cultivation of cotton expected to increase by 7 per cent to 11.3 million hectares in 2017 - 18- due to better returns from rising prices and improved crop yields during the year 2016 - 17.
  • Indian exports of locally made retail and lifestyle products grew at 10 per cent from 2013 to 2016.
  • The Government targets textile and garment sector exports at US $45 billion for 2017 - 18.
  • Target to increase textile exports to US $32.8 billion and investment to Rs. 80, 630 crore (US $12.09 billion) in the next three years.

Government Initiatives

  • Export promotion policies for the textiles sector include:
  • 100 per cent FDI in the Indian textiles sector under the automatic route.
  • Encourage new entrepreneurs to invest in knitwear by increasing allocation of funds to Mudra Bank from Rs. 1, 36, 000 crore (US $20.4 billion) to Rs. 2, 44, 000 crore (US $36.6 billion).
  • Upgrade labour skills by allocating Rs. 2, 200 crore (US $330 million)
  • Introduce a mega package for the powerloom sector- social welfare schemes, insurance cover, cluster development, upgradation of obsolete looms, tax benefits, and marketing support.
  • Ministry of Textiles signed MoU with 20 e-commerce companies for providing platform to artisans and weavers to sell their products directly to the consumer.
  • Meghalaya’s first-ever apparel and garment making centre will create employment opportunities, additionally, Meghalaya sanctioned Rs. 32 crore (US $4.8 million) for promotion of handlooms.
  • Labour-friendly reforms will generate around 11.1 million jobs in apparel and made-ups sectors

Investments

  • Witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth US $2.47 billion during April 2000 to March 2017:
  • Future Group planning to open 80 new stores under its affordable fashion format, Fashion at Big Bazaar (FBB), and is targeting sales of 230 million units of garments by March 2018 expected to grow to 800 million units by 2021.
  • Raymond partnered with Khadi and Village Industries Commission (KVIC) to sell Khadi-marked readymade garments and fabric in KVIC and Raymond outlets.
  • Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing Rs. 400 crore (US $60 million) in the next 4 years.

- Published/Last Modified on: September 6, 2017

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