The Indian textile industry which is currently estimated at $108 billion has the potential to cross the $500-billion mark by 2025 if the sector gets adequate Government support. “If the Indian textile industry takes the right steps and gets adequate policy support from the Government, it could cross $500 billion by 2025 from its present size of $108 billion. This will also catalyse another 35 million jobs and $200 billion worth of investments,” said to a high-level report.
The $500 billion market figure consists of domestic sales of $315 billion and exports of $185 billion. The current industry size comprises domestic market of $68 billion and exports of $40 billion. Mr. Prashant Agarwal, Wazir Advisors Joint Managing Director, told newsmen: “We have belief that India is a goldmine for growth of textiles and apparel value chain, whose potential is yet to be fully tapped.”
According to him, the Government needs to give more support to the industry with specific focus on the man-made fibre-based textile value chain. Immediate GST implementation to remove differential tax treatment to man-made fibres, creation of mega textile parks, single-window system for FDIs, labour law reforms, extension of the loan period in the case of the Technology Upgradation Fund Scheme (TUFS) and R&D promotion are some of the policy measures needed to boost the industry prospects.
Implementation of these suggestions will help attract investment and encourage technology upgradation, innovation and healthy growth of the industry. With a 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 the global textile trade expected to go down by five per cent. This will help India to push up its exports to $185 billion, the report said.
The Indian textile industry needs to effect a major shift in its fibre mix, which is presently tilted towards cotton (55 per cent), while the world fibre consumption is tilted towards polyester fibre (50 per cent). The Indian market is also consuming more man-made fibre-based products as cotton prices are fluctuating unpredictably.
The report further said that global brands are also setting up more shops in India and the market share of women’s wear is increasing and private labels are gaining prominence in organised retail.
India may start consuming more polyester than cotton in the next five years. This will help raise the market size of polyester fibre substantially.
Wazir and PCI have decided to set up the Polyester Textile Investment Promotion Cell which will help Indian and overseas manufactures to know more about the sector, identify investment opportunities and form joint ventures.