Economics and Trade: Will the Textile Sector Make India Self-Reliant?
India’s textiles quarter is one of the oldest industries in the Indian economic system and it exists for many centuries. China continued to shed its market share and recently Bangladesh and Vietnam outpaced India. It doesn't mean that India has missed the bus. In International Webinar on Textile Traditions, PM Modi emphasised that Indian textiles are highly valued globally and have also got enriched with customs, crafts, products and techniques of other cultures. This makes the Indian Textile industry-unique and valued rich industry when compared to the textile industries of other countries.
To make the textile sector self-reliant, the Government is focussing on skills up-gradation, financial assistance & integrating the sector with the latest technology.
Indian textile industry continues to be dominated by cotton, accounting for nearly 75% of the total fibre consumption in the country. World wide India's share is 7% of the industry output. In 2000, the Government of India passed the National Textile Policy. Now 100% FDI is allowed under the automatic route.
To boost up the textile industry, new textile policy 2020 was formulated and the Govt. has implemented various schemes to provide support to Textiles and Apparel Sector:
① Knitting and Knitwear Sector scheme: Government has launched a separate scheme for development of Knitting and Knitwear Sector to boost production in knitting and knitwear cluster at Ludhiana, Kolkata and Tirupur.
② Government is implementing Amended Technology Up-gradation Fund Scheme (ATUFS) for technology up-gradation of the textile industry to incentivize production with an outlay of Rs.17,822 crore during 2016-2022. It is expected to attract investment of Rs.1 lakh crore and generate 35.62 lakhs employment in the textile sector by 2022.
③ Government has launched a special packages and benefits worth Rs.6000 crore in 2016 to boost investment, employment and exports
④National Handloom Development Programme, Comprehensive Handloom Cluster Development Scheme, Handloom Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes.
⑤ Silk Samagra – An integrated Scheme for development of silk.
⑥ Power Tex India: A comprehensive scheme for Powerloom sector.
⑦ Jute ICARE for increasing the income of farmers through different interventions.
⑧ Integrated Wool Development Programme (IWDP) was approved by Government of India to provide support to the wool sector, starting from wool rearer to end consumer, with an aim to enhance quality and increase production during 2017–18 and 2019–20.
Nonetheless, the private sector has also contributed to the textile industry in the domestic market as well as in the international market. Top 10 private textile industries in India are (source: indiacompanies.in):
1. Arvind Ltd (Revenue: Rs 7,229 Cr)
2. Vardhman Textiles Ltd (Revenue: Rs 6,706 Cr)
3. Welspun India Ltd (Revenue: Rs 6,828 Cr)
4. Raymond Ltd (Revenue: Rs 6,767 Cr)
5. Trident Ltd (Revenue: Rs 5,394 Cr)
6. K P R Mill Ltd (Revenue: Rs 3,384 Cr)
7. Page Industries Ltd (Revenue: Rs 2,872 Cr)
8. Nitin Spinners Ltd (Revenue: Rs 1,226 Cr)
9. Rupa & Company Ltd
10. Himatsingka Seide Ltd
Post-Covid, India sees challenges and opportunities both in textile industry growth. PM Modi says that three principles adaptability & stills, self-reliance, and Innovation have become even more relevant now. Textile industry will help to build an ‘Atamnirhhar Bharat’.