Introduction: third largest producer of cotton, second

Introduction:

Textile
Industry provides the vast employment opportunities that provide a gateway for
developing countries to meet out the problem of large scale unemployment
problem. It is the second largest provider of employment in India after
agriculture. Textile Industry plays an important role in the economic
development of the country. Indian Textile Industry made a major contribution
to the economy in terms of exports, direct and indirect employment, net foreign
exchange earnings and boost industrial production. India is the third largest
producer of cotton, second largest producer of silk, the largest producer of
jute and the fifth largest producer of man-made fibres and yarn. The major
exports are from textiles and apparel sector in India.

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Textile Industry is one
of the oldest industries in India referred as the “Traditional Industry” and
also known as the leg of economy of the industry but the scenario started
changing after liberalization of Indian Economy since 1991 (Sharma and Dhiman,
2015).

 

 

 

 

The Textile industry is
the labor-intensive industry which provides a gateway for developing countries
to entering into the global market. The economic performance of the textiles
industries in India has large impacts on employment opportunities especially
for women, the development of Small and Medium Enterprises (SMEs) and spill
over into the informal sector.

Today, developing
countries produce half of the world’s textile exports. Countries such as China,
Bangladesh, Sri-Lanka, Vietnam and Mauritius have experienced high growth in
this sector (Chakrabarty, 2014). China is the world largest producer and
exporter of textiles and has witnessed high growth in spinning and weaving
equipment than any other country.Introduction:

Textile
Industry provides the vast employment opportunities that provide a gateway for
developing countries to meet out the problem of large scale unemployment
problem. It is the second largest provider of employment in India after
agriculture. Textile Industry plays an important role in the economic
development of the country. Indian Textile Industry made a major contribution
to the economy in terms of exports, direct and indirect employment, net foreign
exchange earnings and boost industrial production. India is the third largest
producer of cotton, second largest producer of silk, the largest producer of
jute and the fifth largest producer of man-made fibres and yarn. The major
exports are from textiles and apparel sector in India.

Textile Industry is one
of the oldest industries in India referred as the “Traditional Industry” and
also known as the leg of economy of the industry but the scenario started
changing after liberalization of Indian Economy since 1991 (Sharma and Dhiman,
2015).

 

 

 

 

The Textile industry is
the labor-intensive industry which provides a gateway for developing countries
to entering into the global market. The economic performance of the textiles
industries in India has large impacts on employment opportunities especially
for women, the development of Small and Medium Enterprises (SMEs) and spill
over into the informal sector.

Today, developing
countries produce half of the world’s textile exports. Countries such as China,
Bangladesh, Sri-Lanka, Vietnam and Mauritius have experienced high growth in
this sector (Chakrabarty, 2014). China is the world largest producer and
exporter of textiles and has witnessed high growth in spinning and weaving
equipment than any other country.Exports of textiles and
clothing products have steadily increased over the last few years. Textile
Yarn, Garments and Apparel are the major exports of India which employs nearly
12.3 million persons and garment sector including ready-made garments, man-made
fibres and other textile clothing contributes around 43% to the Indian
exports.(Annual Report, Ministry of Textiles,  2014-15). Currently the industry shares 4.7 %
in world market of textile and clothing and growing around 9-10% with Indian
economy. (Lal, R, 2011).

Presently , Indian Textile
export are limited by garment category with includes a majority share of around
43% of yarn, fabrics, fibre, and other textile products like carpets
,Non-wovens. etc (Annual Report , Ministry of Textiles , 2015-16). The Indian
government has come up with number of export promotion policies for textile
sector which offers the important opportunities to start industrializing their
economies and in course of time diversify away them from their own commodity
dependence. The government policy provides several opportunities for
maintaining the incipient export growth which helps in increasing production
and productivity in cotton, cotton yarn, promoting rich heritage of handlooms
and handicrafts and enhancing value addition in garmenting and apparel sector.
It also attracts high capital flow and Foreign Direct Investment. (Bhardwaj and
Afza, 2017).

 

 

 

Government
Policies/Schemes and initiatives in recent years

The Government has come
with number of policies and schemes for export promotion and employment
generation opportunities in recent years. It allows 100 percent FDI in the
textile sector under the automatic route.

·        
Technology
Upgradations Fund Scheme

The
Scheme was introduced for the first time in 1999 in order to drive the capital
investment for technology upgradation and modernization of the Indian Textile
Industry by providing them capital subsidy and specific interest reimbursement.

Further
the Revised Restructured Technology Up- gradation Fund Scheme (RR-TUFS) comes
in 2015 which includes manufacturing of major machinery for technical textiles
for 5 per cent interest reimbursement and 10 per cent capital subsidy in
addition to 5 per cent interest reimbursement scheme also provided the
specified technical textile machinery. Its gives option to MSME textile and
jute industry avail benefits of money margin subsidy on investment in
machinery.

 

·        
The
Schemes for Integrated Textile Parks (SITP)

It
is the flagship Scheme which provides world class infrastructure facilities to
the Indian Textile Industry implemented under the 10th five year
plan. Common Infrastructure like compound wall, roads, drainage water supply,
electricity supply including captive power plant, effluent treatment plant,
telecommunication are essential part of infrastructure development of park. Under
this scheme the technical textile units can also avail its benefits. GoI
provides financial support up to 40% of the project cost subjected to the maximum
of Rs. 40 Crore. Around 80 Textile Parks have been approved under the schemes
and are under various stages of implementation. By 2020 many more Textile Parks
are to be sanctioned (Annual Report, Ministry of Textiles, 2016-17)

 

·        
Integrated
Skill Development Scheme

The
Scheme focused on sector-specific
skill development training. Integrated Skill Development Scheme provides
skill-based training to around 1.5 million people and covers all the
sub-sectors of textile such as textiles and apparel, handicrafts, handlooms,
jute and sericulture.

                                                                                                                                         

·        
Integrated
Processing Development Scheme

Integrated
Processing Development Scheme for sanctioning Textile processing parks has been
initiated. Around INR 5 billion has been earmarked for this scheme.

 

 

 

·        
Common
Effluent Treatment Plant

The
Government has taken major steps towards the solution for textile wastewater management
is implementation of a comprehensive effluent collection sewerage network and Common
Effluent Treatment Plant (CETP) for
treating the textile effluent includes the system of Zero Liquid Discharge
(ZLD). No park can work without common
effluent treatment facilities.

 

·        
Technical
Textile

Technology
Mission on Technical Textile (TMTT) comes under with the objective of setting
up Centres of Excellence in order to provide infrastructure support in the
production of technical textiles, to support and meet the growing needs of both
both inland and export markets with the overall outlay of Rs 200 Crore.

 

Various
facts in Textile Industry

1.      Exports

Worldwide,
Textile is one of the major contributing sectors of Indian exports. It contributes
14 percent of Industrial Production, 10 percent of manufacturing production, 2
percent of India’s GDP, employs around 45 million people and occupies around 13
percent share of Indian exports. Exports of cotton have emerged as a major
source of foreign exchange earnings for the country. Cotton being the,
commercial crop of India is grown in 84 million hectare but the per hectare
yield in India is lower in compare to other textile competitive countries like
China, Australia, turkey and USA in terms of quality standard and machinery (Saksena,
K.D 2002).

However,
share of export is far more than import in textiles in India. In recent years
there is a slowdown in import growth of Indian textiles in US and EU markets. Although
faster clearance of exports and imports can reduce the business competitiveness
and transaction cost. India should need to force on enhancing the share of its
exports in the world market to improve Textiles and Apparel performance. Mega
textile shows need to be held more frequently to capture new markets in Japan,
South Asia, Australia, Latin America and South America. Improved methods for
upgradation of High technology, development of skilled manpower, credit for
large scale investment have the potential to increase exports ratio which
automatically help in increasing the contribution of textiles in the GDP as
well as strengthen India’s global position in textile industry.

 

 

 

 

 

2.      Employment

In
India, Textile Industry is the single largest industry with around 50 lakhs
people are employed directly or indirectly with respect to 1800 textile mills
located in different parts of country. The strength of this industry is from
its strong production base od wide variety of fibres/yarns, natural fibres like
cotton, jute, wool and silk, synthetic, man-made fibres. It is the second
largest industry which provides employment at large scale terms of direct and
indirect employment. (Ramachandram, M and Raichurkar, P, 2015).

There
are very big opportunities in textile industry to generate plenty of jobs
because the fashion industries are dominating in textile sector. The small
scale units which can produce readymade garments according to the requirement
of their local market can certainly generate employment especially for women in
multifold i.e. stitching, accessories, designing etc.

 

3.      Marketing Initiatives

Today,
E-marketing is the largest platform for more flexible and cost effecting
business. It is the easiest way of doing business these days which also helps
us to create awareness about the different textiles fibres, organic textiles,
and easy excess of ready-made garments directly from the manufactures.
E-marketing businesses have been developed by Central Cottage Industries
Corporation of India and the Handicrafts and Handlooms Export Corporation of India.

E-marketing
initiatives should pursue in order to cut down intermediaries and increase wage
earnings of weavers which attracts youth towards the handlooms. But at the same
time cost ratio is quite high in terms of high competition, design effective
website, and high advertising cost. The Government should part with the cost of
these products so that they should be cost effective, as per recent trend and
at affordable price

 

4.      Entrepreneurship

Textile
Industry is the only industry which can provide a large number of jobs by
setting up small units in the form of Cottage, Small and Micro units. The
increasing demand of readymade garments with latest fashion trend can boost the
setting up of textile units because requirement of capital and other
infrastructure is one of the major benefits to encourage more and more people
to setup units in their area.

Government
can encourage people especially women to setup small units by giving subsidy
and incentives for such units. If the textile industry can be setup with
minimum capital and formalities, the problem of huge unemployment can be solved
by promoting entrepreneurship in youth today.

 

 

 

Conclusion:

In recent year textile
industry has gone through several changes regarding exports, employment, Market
and Entrepreneurship. It is considered as the largest growing industry.
Availability of raw materials and skilled labour force has made India a
sourcing hub. Current and improved schemes show potential growth in the
development of textile industry in terms of GDP. The Government needs to focus
more on strengthening and increasing employment, investment opportunities for
technical textiles, garments and retails brands and sustainable growth.
Changing lifestyle and increasing demand for quality products are needed to
enhance in a sustained way. The Government and textile industry need to
collaborate and promote superior quality exports opportunities, favorable trade
policies which leads to increase in domestic demand for higher textile
production.

  

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