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Mark Twain once said “Clothes make the man. Naked people have little or no influence on society”. A pair of well-fitted chinos can not only make a man but also set him apart from the crowd.

Mark Twain’s words are today’s reality – clothes, rather its elegance now defines a person’s personality, his or her attitudinal vibrancy and reflects his place in society. In fact, ever since the human race graduated from the basic need of food to attire, clothing has taken a place of pride and matter of flaunting abundance.

Not surprising that the international textile industry now impacts almost everyone on earth. It is an estimated $ 3 trillion industry that is concerned with refinement, distribution, and production of natural and synthetic fibres that are used in various industries. Textile is the world's seventh most traded product and has a total trade amount of approximately $ 900 billion.

The textile industry employs an estimated 60 million people globally. Jobs in the garment sector are crucial in the developing nations like Bangladesh, Vietnam, Pakistan and India. The industry accounts for about 2% of the world’s GDP and an even bigger portion of the GDP of the leading producers of textiles like China. China plays a key role in the global export and production of clothing and textile.

Like most other sectors, the garment industry too was hugely affected by the coronavirius pandemic that followed by subsequent rising inflation across the globe. The industry is also facing pressure to evolve to meet the challenges of climate change and eco-friendly production. The end of the global pandemic and increased concern for sustainability are the two key factors driving trends in garment manufacturing, from a redrawn supply map to increased use of recycled materials.

With Covid-19 restrictions behind us in most regions of the world, consumers will be eager to revamp their wardrobes and dress stylishly when they go out. As more and more white-collar workers head back to the office, they’ll also shelve the sweatpants and buy new office attire. This means garment manufacturers will want to expand their portfolio to include fashionable and professional products to weather the overall growth slowdown.

When it comes to raw materials, the garment industry weathered dramatic price fluctuations in 2022 due to the impact of the conflict between Russia and Ukraine. The prices of synthetic fibers have now restabilized, but above pre-invasion levels. On top of this, consumers are paying attention to how their clothing is made, preferring natural materials over less eco-friendly synthetic materials. For these reasons, in 2023 garment manufacturers are expected to further increase their use of natural fibres like cotton, flax, hemp, and milkweed.

Growth of textile industry in India

In the new order where natural fibre like cotton is given priority as the raw material for garment manufacturing, India with its vast cotton economy is comparatively better placed. Cotton is one of the most important commercial crops cultivated in India and accounts for around 24% of the total global cotton production. The Indian Textile Industry consumes a diverse range of fibres and yarns and the ratio of use of cotton to non - cotton fibres in India is around 60:40 whereas it is 30:70 in the rest of the world.

India is the only country which grows all four species of cotton G. Arboreum & G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton) and G. Hirsutum (American Upland cotton). G. Hirsutum represents 90% of the hybrid cotton production in India and all the current Bt cotton hybrids are G. Hirsutuim.

Cotton is one of the most important commercial crops cultivated in India and accounts for around 24% of the total global cotton production. It plays a major role in sustaining the livelihood of an estimated 6 million cotton farmers and 40-50 million people engaged in related activity such as cotton processing & trade. The Indian Textile Industry consumes a diverse range of fibres and yarns and the ratio of use of cotton to non - cotton fibres in India is around 60:40 whereas it is 30:70 in the rest of the world.

India is one of the largest exporter of cotton with estimated export of 27 lakh bales (0.46 Million Metric Tonnes) i.e. 5% of world export of 533 lakh bales (9.07 Million Metric Tonnes) in 2023-24. Although India is a leading producer and exporter of cotton, some quantity i.e. less than 10% of the total consumption of cotton in India is imported by the textile industry to meet their specific requirement. cotton in India is imported by the textile industry to meet their specific requirement.

India’s textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, with the capital-intensive sophisticated mills sector at the other end. The fundamental strength of the textile industry in India is its strong production base of a wide range of fibre/yarns from natural fibres like cotton, jute, silk, and wool, to synthetic/man-made fibres like polyester, viscose, nylon and acrylic.

The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. India’s textiles industry has a capacity to produce a wide variety of products suitable for different market segments, both within India and across the world.

In order to attract private equity and employee more people, the government introduced various schemes such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS) and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.

The Indian Textile and Apparel Industry is valued at over US$ 100 billion, employing over 45 million people and accounting for 14% of the country's industrial production. India is a global leader in producing several textile products, such as being the second biggest producer of silk, cotton and Multimode Fibre (MMF). It is also a world leader in jute production, accounting for nearly 70% of global production. Additionally, based on capacity, the country has the second largest vertically integrated production base after China. This leadership position gives the country significant advantages, such as manufacturing strength across the value chain and a huge raw material base. The value chain includes weaving, spinning, garmenting and processing.

The Confederation of Indian Industry (CII) expects the industry to achieve a production level of US$ 250 billion by FY25, rising at a Compounded Annual Growth Rate (CAGR) of 12% between FY22 and FY25. In terms of exports, the CII expects industry exports to increase at a CAGR of 15% and reach US$ 185 billion by FY25. This target would help India double its share of the global textile and apparel trade from the current level of 5%. Growth is expected to be driven by demographic dividend, an increasing tendency to spend more on lifestyle products, and the spread of e-retailing and organised retailing in smaller towns and rural areas, thus boosting domestic demand. The growth in the industry will maximise value creation and employment generation and boost investment of approximately US$ 180 billion in the industry.

Textile and apparel exports from India

The Indian textile industry contributes approximately 15% to the country's export earnings. In FY22, textiles, handicrafts and apparel accounted for 10.6% of India's total exports. Barring a decline in FY20 and FY21, exports have risen steadily since FY16. Textile and apparel exports rose to their highest level in FY22, reaching $ 44.4 billion and growing 41% over FY21 and 26% over FY20. Exports have increased 13.9% since FY16. In FY22, the US was the top export destination, accounting for 27% of textile exports, followed by the EU (18%) and Bangladesh (12%).

Readymade garments represent the largest share of textile exports, followed by exports of cotton textiles until FY21. However, cotton textile exports rose significantly in FY22, surpassing the readymade garment segment and thus contributing to the highest share. India is a net exporter with respect to the textile and apparel industry, which implies that textile and apparel exports exceed the country's imports. Hence, the industry is important in earning valuable foreign exchange and reducing the current account deficit. The government aims to achieve $ 100 billion in textile exports by 2030.

Fine craftsmanship has long been a hallmark of Indian textile and clothing products, spanning the whole value chain from fiber, yarn, and fabric to highly desirable international clothing. Indian denim, cotton, and silk are very well-liked abroad. Overall, Indian clothing has also been successful in international fashion hubs.The major garment exporters in India are Arvind Limited, Raymond Limited, Alok Industries Limited, Loyal Group, Sutlej Textiles, and Shahi Exports.

Government initiatives to boost textile sector

The Indian textile industry has strength across the entire value chain from natural to man-made fiber to apparel to home furnishings. Its share in the nation’s GDP is 6% and in exports is 13%. The sector is the second largest employer after agriculture. After the phasing out of export quotas in 2005 India’s export performance has been below expectations. Its share of global exports is around 5% whereas it was expected to rise quickly towards China’s level. The Chinese share in global exports is 39%. Vietnam and Bangladesh have shown remarkable success. Vietnam could achieve a peak export growth rate of 30% while Bangladesh could achieve a growth rate of 18%. Taking innovative measures in partnership with the industry and learning from experience, India could aspire to achieve 20% growth in exports over the next decade. In any case the achievement of 15% growth rate in exports should be feasible. In the domestic market, sustaining an annual growth rate of 12% should also not be difficult. This implies that with a 12% CAGR in domestic sales the industry should reach a production level of US$ 350 billion by 2024-25 from the current level of about $ 100 billion for the domestic market. With a 20% CAGR in exports India would be exporting about $ 300 billion of textile and apparel by 2024-25 while with the lower15% CAGR in exports, India would be exporting about US$ 185 billion of textile and apparel by 2024-25.Considering the targeted growth in exports, India should by then have a market share of 15% to 20% of the global textile and apparel trade from the present level of 5%.

No wonder, the government places a special importance for the growth and development of the textile sector. The government approved setting up of Seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with an outlay of ₹4,445 crore for a period of seven years up to 2027-28. These parks will enable the Indian textile industry to become globally competitive, attract large investment and boost employment.

The government approved setting up of Seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with an outlay of ₹4,445 crore for a period of seven years up to 2027-28. These parks will enable the Indian textile industry to become globally competitive, attract large investment and boost employment generation, according to the ministry of textiles.

The government approved the Production Linked Incentive (PLI) scheme for textiles, with an approved outlay of ₹10,683 crore, to promote production of MMF apparel, MMF fabrics and products of technical textiles in the country. This is expected to enable India’s textile sector to achieve size and scale and to become competitive.