Textile industry in India is one of the major industries.
Traditionally, the Indian textile industry is the only industry after agriculture, which has generated huge employment for unskilled as well as skilled labour in textiles. Being the second largest fibre producer in the world, India has its markets dominated by cotton fabrics. As cotton is the major fibre produced in India, 60% of the Indian textile Industry is cotton based.
India has always been a major player in textiles, being the first in global jute production India has a share of 63% in the global textile and garment market. India is 2nd in global textile manufacturing and in silk and cotton production. 100% FDI is allowed via automatic route in the textile sector.
History of the textile industry goes way back to the Harappan civilization, people of the harappan civilization 4000 years ago, knew the art of spinning and weaving of cotton. Also, the Vedic literature has references to spinning and weaving materials. India has a rich history in textiles, as findings have reviled that textile trade was conducted in the early centuries India.
Till date, the textile industry is the second largest sector in India generating employment, by offering direct employment to above 35 million people in India. As per the Ministry of Textiles, textile share in the total exports during April–July 2010 was 11.04%. India has a promising future in the textile industries, According to AT Kearney’s ‘Retail Apparel Index’, India is ranked as the fourth most promising market for clothes retailers in 2009.
The sturdy domestic demand and also the revival of the Economic markets by 2009 have led to the large growth of the Indian textile business. In Dec 2010, the domestic cotton value was up by fifty percent as compared to the Dec 2009 costs. The reason for the increase in cotton prices was the floods in Pakistan and China. There has been increase in India’s share of worldwide textile commerce to seven percent in over five years as it projected a high production of textile. However, the increased prices are becoming major concern for the domestic producers of the country.
Few other concerns are being faced by the textile industry like lack in technological up-gradation and lack of skilled labor. Although, considering a developing country’s point of view, the technology upgrading depends on certain factors such as availability of skilled labour, extent of assimilation of foreign technologies as well as government policies that encourage investments in skills and technology. The working paper series of ADB South Asia on Upgrading in the Indian Garment Industry said that the Export promotion strategies of the government tend to overlook the aspect of technological up-gradation , and a more nuanced approach to the global value chain activity may help the industry.