Indian textile industry could add another $400 billion by 2025 to its present size of $108 billion
An International Research Report by Wazir Advisors (India) & PCI Xylenes & Polyesters (UK) revealed that Indian textile industry could add $400 billion by 2025 to its present size of $108 billion. This means 35 million jobs and $200 billion of investments by 2025. At present, the share of India’s textile industry in global trade is 5.2 per cent and it can rise up to 10 per cent.
If the Indian textile industry takes the right steps and gets adequate policy support from the government, it could add another $400 billion by 2025 to its present size of $108 billion. This will also catalyse another 35 million jobs and $200 billion of investments, notes an international study by Wazir Advisors and PCI Xylenes & Polyesters.
With 5.2 per cent share of global trade, the Indian textile industry ranks second in the world, but far behind China. This is likely to change, with China’s share in global textile trade expected to go down by 5 per cent which will help India to push up its exports to $185 billion, even as the domestic apparel market is likely to grow by 4.5 times.
Indian textile industry needs to have a major shift in its fibre mix which is presently tilted towards cotton (55 per cent), while the fibre consumption of the world is tilted towards polyester fibre (50 per cent). At 6 digits HS code level, India’s presence is insignificant in global trade of 864 manmade fibre-based textile and apparel commodities – while the collective trade in these commodities stood at $208 billion in 2012, India’s share was just 0.19 per cent or $385 million.
India’s domestic market is also consuming more manmade fibre-based products as cotton prices are fluctuating unpredictably, global brands are setting up more shops, women’s wear increasing market share and private labels are gaining prominence in organised retail. India may start consuming morepolyester than cotton in next five years, which will increase the market size of polyester fibre by 1,500 thousand tonnes.
The report recommends the Government to give more support to Indian textile industry with specific focus on manmade fibre based textile value chain. Immediate GST implementation to remove the differential tax treatment to manmade fibers, creation of mega Textile Park, single window system for FDI specific to textiles, labor law reforms, extension of loan period in case of TUFS and research & development promotion are some of the policy measures suggested in the report. Implementation of these suggestions will help attracting investment, technology up-gradation, innovation and healthy growth of the industry.
In the second phase of their initiative, Wazir & PCI have decided to set up Polyester Textile Investment Promotion Cell (PTIPC) which will support Indian and overseas manufactures to know more about the sector, identify investment opportunities in India, form JVs and make investment in manmade fibre-based textile value chain of India.