Page 26 - CII Artha Magazine 2022

Sector in Focus

Indian Textiles: A BREAK-UP SHOWS Estimated Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (in million)

THAT THE ESTIMATED
PRODUCTION OF
Taking a MAN-MADE FIBERS Man-made Man-made Cotton Blended & Total Mill Decentralised Grand total
Cloth
ROSE BY DURING
filament
fibre
yarn
sector**
(Excl Khadi,
sector*
100%
Spun
APRIL-JANUARY
Wool & Silk)
Non-cotton

Yarn
yarn
yarn
2020-21
Leap to the Period Kg Kg Kg Kg Kg Sq mtr Sq mtr Sq mtr
4138
1164
5665
1347
2315
2015-16
1527
62269
64584
1604
2016-17
5659
4055
63480
1159
61216
2264
1364
4064
1616
66845
1187
64688
2157
1319
2017-18
5680
Next Level 2018-19 1442 1160 4208 1682 5890 2078 67992 70070
1426#
3332
1603#
2019-20 (P) (Apr-Jan)
4762
1700
61648
63348
1431
1747
4910
2018-19 (Apr-Jan)
1204
58184
1401
3509
960
56437
% Variation 2019-20
(Apr-Jan) over 33.2 48.6 -5.0 2.1 -3.0 -2.7 9.2 8.9
2018-19 (Apr-Jan)
both in India and abroad. The countries with production Note: * based on statistical data received from units, ** based on set of conversion ratio of yarn to fabric, P is Provisional
products range from facilities across each level of Source: Ministry of Textiles
Why are provides high value addition hand-spun and handwoven the manufacturing value chain,
textiles produced by the small
from fibre to finished product
with low capital investment.
Textiles At a time when economies and unorganized sectors using (garments, home textiles and THE DECELERATION market share. With the Indian Pakistan, China, Vietnam and global arena. Further, the lack of
technical textiles).
traditional modes of
Bangladesh due to a number of
free trade agreement with
exporters unable to leverage
Important across the globe are production, to apparels & Despite this, the country’s IN TEXTILE EXPORTS the opportunity arising out of constraints. These include major textile importers such as
garments produced by the
EU, UK, USA, is a disadvantage
the decline in share of China,
issues such as fragmented
WAS MUCH HIGHER
recuperating from the
aftermath of the pandemic, latest technology and performance in terms of IN 2020-21 DUE TO the benefits are seen to accrue manufacturing, low supply chain as well.
sophisticated mills in the
production and exports has
T he Indian textile industry the domestic textile industry organized sector. The not been commensurate with THE PANDEMIC Bangladesh and Vietnam. exorbitant power costs, paucity
efficiencies, high cost of finance,
to smaller countries such as
has the potential to
has been veritably hailed
as one of the strongest pillars significantly enhance its decentralized power looms, its capabilities. As per available INDUCED SUPPLY of skilled labour & lower TEXTILE INDUSTRY
CHAIN DISRUPTIONS
hosiery and knitting sector
data from the Ministry of
of the Indian economy making presence in the global comprise the largest Textiles, the segments have However, textile exports rose productivity. Moreover, heavy CONTINUES TO FACE
by almost 44 per cent during
dependence on imports of
significant contribution marketplace. component of the textiles posted a mixed performance AND DEMAND COMPETITIVE
towards the country’s GDP, sector. (see table on the next page). COMPRESSION April-February FY22 over the textile machinery, not being PRESSURES FROM
1
manufacturing, employment, According to estimates , the A break-up shows that same period in FY21 and has either a cost leader or a NEIGHBOURING
and exports. With its distinct domestic textile and apparel India has a large textile estimated production of maintained a trade surplus with lead-time leader, low global TEXTILE EXPORTING
contribution towards market has been projected at manufacturing set-up in each man-made fibers rose by 33 Further, textile products hold a exports exceeding imports, presence in the man-made NATIONS
backed by a rise in global
textiles segment etc impedes
generating employment, US$103.4 billion in 2020-21 product segment and is per cent during April-January key position in the global value
reducing poverty, and and is expected to touch among 2020-21 and filament yarn chain, with India being the demand. its competitiveness in the
discouraging rural-urban US$190 billion by 2025-26. the increased by 48.6 per cent world’s fifth-largest exporter
migration, the sector has been very during this period. However, for apparel, home, and technical The textiles industry is hopeful
rightly identified as a catalyst few the estimated production of products. As per recent data, that it would post a further Textile Exports Trajectory (y-o-y%)
rebound in growth in 2022.
for socio-economic Structure and cotton yarn decreased by the exports of textiles & 44.0
transformation of the country. 5 per cent during April-Jan apparels (excluding handicrafts) According to ICRA, India’s
Performance 2020-21 while the estimated contracted by 6.1 per cent and textile sector would stabilize in
The sector accounts for 5 per cloth production by mill 13.4 per cent in 2019-20 and 2022 with cotton spinning and
cent of GDP, 7 per cent of sector decreased by about 2020-21. The deceleration in apparel export segments faring
especially well, as demand tends
manufacturing production and The Indian textiles industry 3 per cent during this period. textile exports was much
12 per cent of exports. It consists of a variety of higher in 2020-21 due to the to revive to pre- Covid levels. 1.7
boasts of wide geographical segments and has a rich pandemic induced disruption in
dispersion with units product-mix which enables supply chain and demand. Despite this, the industry is not -6.1 -13.4
operating even in it to cater to different Despite this, during the same out of the woods and
continues to face competitive
underdeveloped and remote market segments, period, other low-cost 2018-19 2019-20 2020-21 2021-22 (Apr-Feb)
areas. The sector also Mr. Kulin Lalbhai, Co-Chairman, CII National Committee countries such as Bangladesh pressures from textile Source: Ministry of Commerce
on Textiles & Apparel and Executive Director, Arvind Ltd and Vietnam have gained exporting nations such as
1 https://www.investindia.gov.in/sector/textiles-apparel
26 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 27
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