Global Textile Market in India

   by AEPC Dishain Business / Management    (submitted 2012-09-19)

India has a diverse and rich textile tradition. Indian textile industry largely depends on textile manufacturing and export. The country earns about 27 per cent of its total foreign exchange through textile exports. Further, it contributes about 14 per cent to industrial production and 4 per cent to the gross domestic product (GDP). The sector is the second largest employment provider after agriculture.


Textile industry occupies a unique position in the Indian economy. The industry is something that keeps on changing with the change in time. The change in trend is prominent as people are becoming more and more conscious with the circulation of various media. The people, who earn a fair amount of income, are getting influenced by the foreign culture and spend a lot of money on buying various branded clothes.


Indian apparel sector plays an important role in international garment trade. The industry is working with an objective of reaching 7.5 billion by the end of 2012.Within the period of 2005 to 2009, the trade of garments has grown by 3 per cent (CAGR).


Global exports in Apparel Sector


Apparel sector is the largest contributor of global textile market. The world total exports in garment sector accounted for US$ 315.62 billion in 2009. China is the top most exporter of apparel in the international apparel market followed by India, Bangladesh and Vietnam. These top exporters accounted for 44 per cent of world total exports in 2009.


India's share in global exports


India's share in global exports stood at 4 per cent in 2009 as compared to china (34 per cent), Bangladesh (3 per cent), and Vietnam (3 per cent).


Exports from India


The export of apparels has become a main source of income for the industry and has enhanced the Indian garment economy for a better future. India's export to the world has been growing with 5.5 per cent per annum since 2005-06. In the financial year 2009-10, total garment exports from India accounted for US$ 10.7 billion. The major markets of Indian garment exports are USA, UK, Germany, United Arab Emirates (UAE) and France, wherein the USA accounted for a major share of 25 per cent in 2009-10.


The current export of Indian garment industry isUS$14 billion. Due to continuous increase in orders from the global buyers, it is expected to touch US$ 16 billion in 2012-13.


Challenges in Apparel Industry


The US and the EU continue to be the most important markets for Indian apparel industry. However, these countries have been insisting upon compliance to certain social, environmental and safety standards and norms by the producing units in the exporting countries.


The international garment trade market is very competitive and requires all the major suppliers to continuously improve their product basket in terms of quality and corporate social responsibility.


The apparel export promotion council of India (AEPC) helps the clothing industry to follow various global norms, which help the factories to improve their universal standards through development and implementation of tools.