The Indian Textiles Industry contributes about 14 per cent to industrial production, 4 per cent to the country's gross domestic product (GDP), 17 per cent to export earnings. It is the second largest provider of employment after agriculture and provides direct employment to over 35 million people in the country. The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). production increased by about 4 per cent during the period April-December 2013. Cotton yarn production increased by 10 per cent during April-December 2013. Blended and 100 per cent non-cotton yarn production increased by 8 per cent during the period of April-December 2013. Cloth production by mill sector increased by 6 per cent during April-December 2013.
Cloth production by handloom, and hosiery increased by 3 per cent and 11 per cent respectively during 2013. Production by handloom, and hosiery sectors increased by 4 per cent and 13 per cent during April-December 2013. The total cloth production grew by 2 per cent during April-December 2013. The potential size of the Indian textile and apparel industry is expected to reach US$ 221 billion by 2021, according to industry sources. Garment exports from India is expected to touch US$ 60 billion over the next 3 years. The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investments (FDI) worth Rs 6,428.18 crore (US$ 1.03 billion) during April 2000 to November 2013. The Government of India has also allowed 100 per cent FDI in textiles under the automatic route. The Indian textile industry which was growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate of 8-9 per cent in value terms.In the 12th Five Year Plan (2012-17), the government plans to spend US$ 9.1 billion on textiles as against US$ 4 billion in the 11th Plan.
The Government of India plans to set up a Rs 100 crore (US$ 16.05 million) venture capital fund to provide equity support to start-ups in the textile sector, in order to encourage innovative ideas in this export intensive sector. The Government of India has allotted Rs 700 crore (US$ 112.39 million) in the next Five Year Plan for the development of technical textiles. In 2012-13, the technical textiles industry reached Rs 7.48 trillion (US$ 120.12 billion) at an annual growth rate of 3.5 per cent. The market is expected to grow to US$ 31 billion by 2020, at a compound annual growth rate (CAGR) of 10 per cent.
INDIAN TEXTILE INDUSTRY AT A GLANCE IN 2013 - 2014 