Textile Manufacturing : Apparel and Textile Export Opportunities

2022-02-03T09:32:24

By SolutionBuggy

Manufacturing MANUFACTURING BUSINESS IDEAS MANUFACTURING INDUSTRY TEXTILE Textile Industry Textile manufacturing Textile manufacturing in India

Textile manufacturing plays a vital role in the Indian economy and is the single largest source of foreign exchange earnings for India. Indian textile manufacturing accounts for 15% of export earnings, 13% of industrial production and 5% of GDP. India with a population of more than 138 crore people, has created a huge domestic market for textile industries. India’s domestic textile production is worth US$ 150 billion. More than 4.5 crore people are employed in textile manufacturing, making it the single largest source of industrial jobs and the second largest overall after agriculture. India is the world’s second largest textile exporter with a massive raw material and production base. Total textile exports from India along with apparel is expected to reach US$ 95 billion by 2025.

Advantages Of Setting Up Textile Manufacturing Unit In India:

Future of the Indian textiles industry looks optimistic because of huge domestic consumption and strong export demand. India’s textile exports from April to December 2021 reached US$ 30 billion.
Rise of e-commerce companies such as Amazon, Flipkart, Myntra, etc.have opened a plethora of opportunities for the Indian textile manufacturers in the domestic level and as well as international market.
Abundant availability of raw materials such as cotton, wool, silk and jute.
Huge demand for RMG of all textiles, cotton yarn/fabs/made-ups/handloom products and floor coverings from other countries.
Availability of low cost labour force. India’s manufacturing wages are among the lowest worldwide, averaging US$ 1.50 per hour.
Domestic market for apparel and lifestyle products is estimated at US$ 90 billion and projected to reach US$ 172 billion by 2025.
Cotton production in India is expected to reach 8.2 million tonnes by 2030 due to increasing demand from consumers.
Availability of a large pool of skilled labourers.
Due to the pandemic, demand for PPE suits and other technical textiles has increased exponentially in India.

Indian textile exports statistics:

India’s textile export has been constantly increasing.The total textile export stood at USD 43 billion in 2020. Ready made garments made of cotton is the most exported fabric from India. The United States, United Arab Emirates, Germany, Bangladesh are major buyers of textile products from India. India faces intense competition from Bangladesh and China with regards to garments export. The Indian government raised the Merchandise Export from India Scheme (MEIS) rate from 4 percent to 6 percent to increase ready made garments export.

Top 6 Textile Export commodities:

Ready made garments made of cotton
Man made yarn and fabrics
Cotton fabrics
Ready made garments made of man made fibres
Cotton yarn
Carpet

Government initiatives to boost textile manufacturing in India:

The Ministry of textiles has approved continuation of the comprehensive handicrafts cluster development scheme worth US$ 22 million in october 2021 to support textile manufacturing at domestic level.
The Indian government has announced a PLI scheme worth Rs.10, 683 crore for man-made fibre and technical textiles for a 5 year period.
The Indian government has announced huge funds in schemes such as Integrated Textile Parks (SITP) worth US$ 190 million and Technology Upgradation Fund Scheme worth US$ 960 million to encourage textile manufacturing in India.
Textiles ministry conducts “Hastkala sahyog shivirs” in more than 418 handloom handicrafts clusters which benefits more than 1.4 lakh weavers.
The Union Ministry of Textiles Government of India has introduced SAATHI (Sustainable and Accelerated Adoption of efficient Textile Technologies to Help small Industries) to revive the power loom sector.
Financial assistance is provided to promote garments exports under the Market Access Initiative (MAI) Scheme.

Amended Technology Upgradation Fund Scheme (ATUFS):

ATUFS was launched by the Ministry of Textiles to increase employment, export, investment, productivity and quality in the Indian textile industry. The Amended Technology Upgradation Fund scheme also promotes investments in the manufacturing of machinery for textiles. ATUFS provides a one time capital subsidy for investment in the technology and employment intensive categories of the textile value chain to promote exports. This scheme was approved for a period from 2016 to 2022 and implemented in the web based iTUFS platform with a main goal of modernizing and upgrading textile manufacturing in India.

Eligibility to get benefits of ATUFS:

The Amended Technology Upgradation Fund scheme benefit is available for the benchmarked machinery under the scheme covering the following activities:

Weaving
Knitting
Processing of yarns, fibres, garments and fabrics
Jute sector
Technical textiles
Silk sector
Handloom sector

The Impact of COVID-19 on Textile manufacturing in India:

Textile manufacturing in India is one of the most severely affected sectors due to COVID-19 pandemic and lockdown. The pandemic has not only affected demand for textiles, but also its supply. Here are the top impacts of pandemic on textile manufacturing in India:

1. Production:

Production activities were halted due to strict enforcement of social distancing norms. It has affected exports, domestic commodity stocks and the employees adversely.

2. Supply chain:

Supply chains have disrupted textile manufacturing due to closure of manufacturing operations across major textiles producers, chiefly China.

3. Prices of essential raw material imports:

Prices of essential raw materials like man made fibre (MMF) have risen which has hampered the cost effectiveness of major input importers such as India and affected its global competitiveness in the garments sector.

4. Consumer Demand:

A general reduction in consumer demand due to cutbacks in employment and wages and government restrictions on non-essential purchases.

5. Exports:

This factor has a major economic fallout for export-intensive sectors like textiles. With depressed global demand conditions and export prohibitions on vital raw materials employed in the manufacture of life saving facial masks, the challenge on the exports front is significant.

Are You Interested To Set Up A Textile Manufacturing Unit?

India is the second largest textile industry in the world. Availability of abundant raw materials and low cost skilled manpower helps textile manufacturers to control costs. The Indian textile industries also enjoy high demand for their products from Europe, USA, UK, etc. To boost textile manufacturing, The Indian government is implementing various schemes and policy initiatives such as Amended Technology Upgradation Fund Scheme (ATUFS), Scheme for Integrated Textile Parks (SITP), etc. Register to SolutionBuggy and get all the services required to start textile manufacturing. Being India’s largest platform in the textile industry, SolutionBuggy offers more than 700 textile consultants having years of experience.

Textile manufacturing featured image

Textile Manufacturing : Apparel and Textile Export Opportunities

Advantages Of Setting Up Textile Manufacturing Unit In India: