Globalization of Indian Textile Industry

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The initiation and development of globalization and Indian textile industry took place simultaneously in the 1990s. The Indian textile industry, until the economic liberalization of Indian economy was predominantly an unorganized industry. The economic liberalization of Indian economy in the early 1990s led to stupendous growth of this Indian industry. The Indian textile industry is one of the largest textile industries in the world and India earns around 27% of the foreign exchange from exports of textiles and its related products. Further, globalization of India textile Industry has seen a paradigm increase in the 'total industrial production' factor of this Industry, which presently stands at 14%. Furthermore, the contribution of the Indian textile Industry towards the gross domestic product (GDP) of India is around 3% and the numbers are steadily increasing. The process of globalization and Indian textile industry development was the effect of rapid acceptance of 'open market' policy by the developing countries, much in the lines of the developed countries of the world.

The initiation and its subsequent development of globalization and Indian textile industry respectively, was effected by the Ministry of Textiles under the Government of India. The aggressive policy that was undertaken for the rapid development of globalization and Indian textile industry were really praiseworthy. The most significant step amongst them was introduction of "The National Textile Policy 2000". This policy envisaged to address the following issues -

  • Increased global competition in the post 2005 trade regime under WTO
  • Huge import volume of cheap textiles from other Asian neighbors
  • High production cost with respect to other Asian competitors
  • Use of outdated manufacturing technology
  • Poor supply chain management and huge transit cost
  • Huge unorganized and decentralized sector
Further, this policy also aims at increasing the foreign exchange earnings to the tune of US $ 50 billion by the end of the year 2010. It includes rational projections for the overall development and promotion of all the sectors involved directly or indirectly with the Indian textile industry. Furthermore, this policy also envisages the inclusion of the huge unorganized and decentralized Indian textile sector under the organized textile industry. This is because the unorganized textile manufacturing sector in India accounts for 76% of the total textile production.

The globalization of the Indian textile sector was the cumulative effect of the following factors -
  • Huge 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
  • Flexible textile manufacturing systems
The Indian textile industry consist of the following sectors -
  • Man-made Fiber
  • Filament Yarn Industry
  • Cotton Textile Industry
  • Jute Industry
  • Silk and Silk Textile Industry
  • Wool & Woolen Industry
  • Power loom Sector
An approximate number of textile manufacturing companies operating in India are given below -
  • Badges, emblems ribbons and allied products - 175
  • Bed covers, curtains, cushions and other draperies - 2471
  • Carpets and rugs - 270
  • Embroidery and embroidered garments, made ups and furnishing - 848
  • Fabrics and textiles - 3013
  • Yarns and threads - 1201
  • Jute products - 337
  • Kids apparel and garments -1052
  • Ladies apparel and garments - 2932
  • Men's' apparel and garments - 2936
  • Miscellaneous garments, textile and leather accessories - 1658
  • Yarns and threads - 1201
  • Wool, woolen garments, blankets and accessories - 468
  • Textile chemicals, dyeing and finishing chemicals - 239
The overall growth of the Indian textile industry can be attributed to the globalization. Today, the Indian textile industry employs around 35 million personnel directly and it accounts for 21% of the total employment generated in the economy. Globalization of the Indian textile industry has also facilitated introduction of modern and efficient manufacturing machineries and techniques in the Indian textile sector. Thus, much of India's economic growth is largely dependent on textile manufacturing and exports.

Last updated on 3/18/2011

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