India Wool Industry

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India wool Industry was a predominantly unorganized and scattered industry until the economic liberalization of Indian economy in the 1990s. After the opening up of the economy, the Indian wool industry witnessed a stupendous growth.

The Indian Wool Industry is an important industry since it is one of the prominent sources of livelihood for the rural India and it represents small, medium, and large scale units. The India wool Industry is smaller in size in comparison to other textile industries in India. The main wool producing states of India are Rajasthan, Punjab, Jammu & Kashmir, Karnataka, Gujarat, Uttar Pradesh Uttaranchal, Andhra Pradesh, Maharashtra, and Haryana. Punjab alone accounts for 40% woolen units, while Haryana accounts for 27%, Rajasthan for 10%, and the rest of the states account for the remaining 23%. The bulk of the wool that is produced in India is of coarse quality and used mainly in the manufacture of hand-knitted carpets. The rest are being used for the, manufacture of apparel, blankets, finished textiles, garments, knitwear, etc. Further, the India wool Industry also caters to civil and defense requirements for warm clothing for the Indian Army. The Indian Wool Industry is the 7th largest in the world and it accounts for about 1.8% of total world production of wool.

Strengths of Indian wool Industry are as follows:

  • Huge woolen textile production capacity
  • Efficient multi-fiber raw material manufacturing capacity
  • Large pool of skilled and cheap work force
  • Entrepreneurial skills
  • Huge export potential
  • Large domestic market
  • Very low import content
Weaknesses of Indian wool Industry are as follows:

  • Increased global competition in the post 2005 trade regime under WTO
  • Imports of cheap textiles
  • Use of outdated manufacturing technology
  • Poor supply chain management
  • Huge unorganized and decentralized sector
  • High production cost
  • Low quality out put
The Ministry of Textiles under the Government of India has taken some significant steps to:

  • Increase production both qualitatively and quantitatively
  • Research for rapid development of woolen products & woolen industry in India
  • Increased export of woolen products