Bright future for Indian Textile Industries

By:Nimish Pant

Post Graduate Diploma in Management: 2010-12 BatchITM business School, Warangal(A.P.)

• Source:• Business Today• Ezinearticles

INTRODUCTION

The textile industry in India is substantial, and largely diversified. The Indian textile industry roots thousands of years back. After, the European industry insurrection, Indian textile sector also witnessed considerable development in industrial aspects. Textile industry plays an important role in the terms of revenue generation in Indian economy.

BRIGHT FUTURE FOR INDIAN TEXTILE INDUSTRY

•The significance of the textile industry is also due to its contribution in the industrial production, employment. Currently, it is the second largest employment provider after agriculture and provides employment to more than 30mn people.

PROSPECTConsidering the continual capital investments in the textile industry, the Govt. of India may extend the Technology Upgradation Fund Scheme (TUFS) by the end of the 11th Five Year Plan (till 2011-2012), in order to support the industry. Indian textile industry is massively investing to meet the targeted. output of $85bn by the end of 2010, aiming exports of $50bn.There is huge development foreseen in Indian textile exports from the $17bn attained in 2005-06 to $50bn by 2009-10. The estimation for the exports in the current financial year is about $19bn. There is substantial potential in Indian exports of technical textiles and home-textiles, as most European companies want to set up facilities near-by the emerging markets, such as China and India

EXPORT POLICYIf textile and apparel exporters seem worse hit by the dollar’s depreciation, it’s for good reason. More than 80 per cent of India’s textile exports are dollar-denominated.A stronger rupee has made exports more expensive and, hence, less competitive against other lowcost competitors. With receding bottom lines and dwindling orders from key markets in the US and Europe, textile and clothing units across the country have no choice but to cut back production— some small and medium enterprises are even downing shutters. Already there are early warning signs that the industry is in for tough times. In April 2007 (latest month for which figures are available), textile exports fell more than 18 per cent. In previous years, exports were growing at between 15 to 20 per cent.

GLOBAL DEMANDThe global demand for apparel and woven textiles is likely to grow by 25 percent by year 2010 to over 35mn tons, and Asia will be responsible for 85 percent output of this growth. The woven products output will also rise in Central and Southern American countries, however, at a reasonable speed. On the other hand, in major developed countries, the output of woven products will remain stable.

FORECASTINGIt is been forecasted that the woven textile and apparel markets will sustain their growth from current till 2010. The imports of apparel and textiles will rise from developed economies like the USA and the western countries of Europe and Japan, along with some newly emerged economies, such as South Korea and Taiwan. Certainly, import growth has been witnessed vertical rise in the previous year.

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APPLICATIONS USEDSpecial kind of woven fabrics are utilized in medical as well as industrial applications. The medical applications include adhesives, dressing bandages, plasters etc.Where as, industrial applications includes;o Geotextile - interior upholstery, trim, airbags and seat belts and lyre fabrics.o Sailcloth - tent and fabrics used architectures, transportation and tarpaulins.And many more applications... The Indian Industry foresees huge demand for industrial woven products for medical and automotive applications. Demand for woven fabrics is anticipated to be rise vertically in the sector of home textiles.Non woven sector has great future in terms of global demand, thus major facilities of cotton yarn are currently concentrating just on home textiles. It is mandatory, that the peak management of the cotton yarn manufacturers analyze the future prospect and growing graph of demand for non woven products.

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CONCLUSIONAnticipating massive growth in medical and automobile sectors, these sectors assures substantial demand for non woven facilities in India. Albeit, home textiles also will lure higher demand, there are specific demands for home textile facilities also.The 7th Five Year Plan has huge consideration on agricultural growth that also includes cotton textile industry, resulting a prosperous future forecast for the textile industry in India. Indian cotton yarn manufacturers should rush forward for joint ventures and integrated plans for establishing processing and weaving facilities in home textiles and technical textiles in order to meet export target of $50bn, and a total textile production of $85bn by 2009-2010.

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