Indian textile exports to grow over 15% in 2014-15

2014-4-30

Indian textile industry has shown a strong growth, sustained by strong domestic consumption. Availability of raw materials such as cotton, wool, silk and jute in huge quantity and skilled workforce has made India an important player in the textile industry.

 

During FY14, powerloom is expected to be almost flat as compared to FY13. But in FY15, it is expected to grow by 11.5%. Major growth in FY15 will be seen in the Mill segment (17.5%), followed by powerloom and handloom.

 

Textile exports are expected to grow by more than 15% during FY15. The Indian textiles and clothing industry is one of the largest contributors to the country’s exports. Exports of textiles have increased steadily over the last few years, particularly after 2004, when textiles exports quota stood discontinued.

 

India has the potential to increase its textile and apparel share in world trade. The Indian textiles industry produces a wide variety of fibres, from cotton to manmade, wool, silk, jute, and multiple blends catering to different demands and needs of companies. India has become a popular destination for many big global retailers due to its strength of vertical and horizontal integration. The quality of the country’s products is seen in the repeat orders from these global companies and the significant growth in their outsourcing from

India.

 

During FY14, exports are estimated to increase to US$ 29,596.46 mn – registering a growth of 12.27%. Further, in FY15, the exports are expected to grow by 15.75%. Given the growth in textile exports due to the investment inflows to this sector to expand the capacity in the entire value chain, the working group constituted by the Planning Commission has estimated the overall growth for exports at 15% with an export target of US $ 65 bn by end of Twelfth Five Year Plan (FY17).

 

1.5 mn trainees are expected to be benefitted from the ISDS scheme during Twelfth Five Year Plan as the sector is one of the largest employment provider, the major concern that would hamper the growth of the industry is the non-availability of the quality and skilled labour and also inadequate training facilities in the country. 

 

Thus, Central Government has started various institutes such as NIFT, SASMIRA, etc for textile specific courses. Further, Government has launched Integrated Skill Development Scheme (ISDS) with the objective to build the capabilities of those institutions that currently provide training and skill development programmes in the textile and apparel sectors. 

 

The scheme was introduced as a pilot in the last two financial years of the Eleventh Five year Plan with an outlay of Rs 2.72 bn including Rs 2.3 bn as central government’s contribution with a physical target of 256,000 persons. 

 

According to Annual Report of FY13 of Ministry of Textiles, 1.5 mn trainees are estimated to be benefitted under this scheme during Twelfth Five Year Plan.

Source:Dun & Bradstreet''s