Business Overview (Introduction)

The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country. Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP, and 17 percent to the country’s export earnings. It provides direct employment to over 35 million people.

The Industry is closely linked to agriculture, the ancient culture and traditions of the India, making Indian textiles sector unique in comparison with other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.

One can identify the whole industry as a pyramid in itself, starting from the production of fiber through natural or man-made resources, to the manufacturing of garments & made-ups, which are then either used domestically or exported.

Within the fiber sector, cotton remains the most significant raw material for the textile industry. India was the 2nd largest producer (4.76 Million Metric Tons) of cotton in the world during 2006-07, accounting for 18.45% of global production. During 2006-07, India had the most land under cotton cultivation, i.e., 9.16 Million hectares. But the productivity, being 521 kg./ha, was far behind the world average of 756 kg/ha. The major reason for low yield is that 65 % area under cotton is rain fed. Out of the total cotton production of 280 lakh bales, almost 235 lakh are used domestically, while 45 lakh bales were exported in 2006-07, giving India a share of.

The production of man-made fiber during 2007-08 shows an increasing trend as compared to the corresponding period of 2006-07.