CARGOCONNECT-MAY23 - Flipbook - Page 22
COVERSTORY
APPAREL SUPPLY CHAIN
INDIA IS A GROWING ECONOMY AND AS SUCH THE T&A MARKET IS ALSO POISED TO GROW.
THE MARKET IS ESTIMATED TO REACH US$250 BILLION BY 2025-26, MAKING INDIA ONE OF
THE LARGEST PRODUCERS AND CONSUMER OF TEXTILES AND APPARELS.
I
ndia is the second-largest garment
manufacturer in the world and has
a textile industry that dates back
centuries and is comprised of a
variety of sectors, including hand-spun
and hand-woven, as well as mills, resulting in a vast range of possibilities within
the textile industry. Approximately 100
million people have been employed by
the industry, which produces a wide
range of goods.
The T&A industry in India is
particularly robust due to the wide
diversity of natural and synthetic fibres
and yarns. Reportedly, the industry
is also technologically advanced as
well as capital-intensive compared to
other sectors.
With a rise in disposable income, the
need for goods in the Indian textile sector
has expanded, resulting in enormous
demand in both the local and foreign
markets. Consequently, India’s textile
industry has a bright future due to the
rapid expansion of the retail sector,
government assistance, and investments.
22 | CARGOCONNECT MAY 2023
Indian T&A Market expected to
touch US$250 billion
India’s textile and apparel market was estimated at US$153 billion in 2021, of which
70% made up for domestic consumption
while exports constituted the rest 30%. The
overall domestic market stood at US$110
billion in 2021 with exports constituting
US$43 billion. Within this, apparel retail
contributed US$80 billion, technical textiles
US$22 billion and home textiles US$8 billion.
As per reports, the Indian T&A market has
the potential to grow to US$250 billion by
2025-26 and is projected to be the second
most attractive market after China.
India’s Rising Exports Share
In terms of global ranking, India is ranked
2nd in textile export with 7% share and 6th
in apparel export with 3% share. Overall,
India holds 4th position with 5% share of
global exports. India’s T&A exports were
US$43 billion in 2021-22 and have grown
at 3.7% CAGR since 2010-11. The exports
are further estimated to grow at 9% CAGR
from 2021 and reach 60 billion by 2025-26.
Apparel is the largest exported category
in India’s exports with a dominant share of
36% in 2021. It is followed by the exports of
home textile and yarn with 7% share each.
Fibre/ lament category has registered the
highest growth in India’s export of textile
and apparel with a CAGR of 11% over the
last decade. USA, UAE and UK are the largest
markets for India’s apparel exports with
30%, 14% and 9% share respectively. The
other major export markets for India are
Germany and France with 6% and 4% share
respectively.
Significant Investments Over
the Years
Investments have increased in this extremely
diverse business. In 2020, the value of India’s
textile exports was US$20.5 billion. From
April 2000 to December 2020, foreign direct
investment (FDI) into the sector totalled
US$3.75 billion.
During the last five years, the sector
has received FDI and several other investments. Indo Count Industries Ltd (ICIL)
announced a US$2.6 million investment in
May of 2021. Under the automated approach,
the Indian government has authorised 100%
automation.
Investments from programmes such as
Samarth Scheme for Capacity Building in
Textile Sector (SCBTS) and Production-linked