Friday, 29 November 2013

Indian textiles expands with significant impact on the US markets

The Indian textile industry has had a long and distributed history in the Indian sub-continent. It ranks amongst the leading textile manufacturing countries in the world and has always made its significant contribution among the top apparel and textile exporters to the key US market. Not just this it is also a major employer in the country being the second largest employer after agriculture and providing the basic necessities of life and hence supporting its role in the country’s economic growth. 
India’s textile industry contributes about 14 per cent to industrial production; 4 per cent to the country’s gross domestic product (GDP); 17 per cent to its export earnings. It is also the source of direct employment for over 35 million people. The growth possibility and future prospects can be realized with supply of abundant raw materials, healthy foreign direct investments (FDI) and a government willing to invest ensures a bright future for India’s textile sector. 
Taking on a good advantage of a weakening rupee and improving signs of a pick-up in the US economy, India's textile and apparel exports to the American markets were secured at the third position for the first seven months of 2013, right after China and Vietnam. This was pegged at a growth rate of 4 percent for this period as against the 3 per cent growth in overall imports into the US. Also tapping on the current trends, the Indian Textile industry is expected to touch US$ 220 billion by 2020, according to estimates by a reputed industry. It is also estimated that Also, India has the capacity to improve its textile and apparel share in the world trade from the current 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020.

Tapping on the source of raw materials, India's main growth had been coming from home textile supplies, which include intermediates such as yarn, fabric and made-ups. India has the advantage of abundant resources of raw materials and is one of the largest producers of cotton yarn in the world and there are good resources of fibres such as polyester, silk, viscose, etc. 
With the current development trends on the mark and keeping investments and funding to the optimal levels will ensure robust and holistic growth of the Indian Textile industry.