CII- Primus Partners’ report forecasts textile industry doubling GDP contribution to 5% by 2030
Technical textiles are set to lead sector growth with a projected CAGR of 15%.
CII and Primus Partners launched a report titled Decadal Outlook for Textile Industry: Threads of Transformation for Textile Industry at TEXFUTURE 2023 Conference on November 1, 2023, organised by CII and Government of Maharashtra.
The report highlights the contribution of the textile industry to the GDP will more than double from 2.3% to about 5% by the end of this decade. Additionally, the Gross Value Added (GVA) is anticipated to display a consistent annual growth rate of 9% from 2021 to 2028.
Chandrakant Patil, Textile Minister Maharashtra, at the unveiling of the report, said “The launch of Textiles Policy 2023-28 signifies a pivotal step in Maharashtra’s journey towards progress. With an ambitious goal of attracting investments worth Rs 25,000 crore and creating job opportunities for 5 lakh individuals, this policy exemplifies our commitment to the industry’s growth and sustainability. It also places critical emphasis on the promising field of Technical Textiles. Furthermore, our policy is firmly rooted in the vision outlined by our Honorable Prime Minister, aligning with the collective goal of propelling India towards developed nation status by 2047.”
Dr Praveer Sinha, Chairman, CII Western Region and CEO & MD, Tata Power Company said, “India, the fifth largest economy globally has a share of just about 5% of the international trade in textiles and apparel. Clearly, the Indian textile industry has a vast potential waiting to be explored, which demands an integrated approach simultaneously focusing on greater value addition, enhanced competitiveness and sustainable industry practices. This will not only boost employment generation but also add to national output. CII is committed to support the textile industry in furthering this journey towards growth and excellence”.
Sharing his insights on the report titled “Decadal Outlook for Textile Industry”,Devroop Dhar, Co-Founder and Managing Director, Primus Partners, said “The textile industry is playing a pivotal role in global trade, employing millions of individuals worldwide. The government has introduced various schemes and incentives aimed at promoting the textile sector, such as the Amended Technology Upgradation Fund Scheme (ATUFS), Production-Linked Incentive (PLI) Scheme for man-made fibers and technical textiles, National Technical Textile Mission, PM MITRA scheme. These initiatives have not only provided financial assistance but also encouraged investments in modern technology and infrastructure, thereby improving the sector’s overall competitiveness.”
Industry outlook
India’s textile industry is poised for remarkable growth, remaining a steadfast source of employment, with over 100 million individuals engaged in textile and allied sectors. As we look to the future, the Indian textile industry is committed to contributing significantly to the nation’s growth, targeting a substantial $ 250 billion milestone by 2030. Additionally, India stands proudly among the top five global exporters in numerous categories, including natural fibers, MMF, spun yarn, filament yarn, woven fabric, and home textiles, with textile and apparel exports expected to surge to an impressive $ 65 billion by FY 2026.
Trends driving textile industry
In the ever-evolving landscape of the textile industry, trends are surfacing in response to dynamic consumer preferences, technological strides, and a resolute commitment to sustainability. Both central and state governments have embarked on a journey of progressive initiatives with schemes like PM MITRA, PLI, and SAMARTH. Remarkably, the textile Industry is poised to remain a significant generator of employment, underpinned by the proactive measures of states like Maharashtra, whose ‘Integrated and Sustainable Textile Policy 2023-28’ targets the creation of half a million jobs. The commitment to fostering employment is further underscored by various Government of India policies, such as PLI Scheme (7.5 lakh) and PM MITRA (3 lakh), collectively aimed at enriching job opportunities.
Challenges
While government initiatives have been pivotal in driving the textile sector’s growth, certain challenges demand immediate attention. The industry’s supply chain, largely comprising MSMEs, is highly fragmented, resulting in suboptimal coordination and resource utilization.
Quality training programs are essential as only 5% of the sector is organized, leaving the unorganized sector reliant on traditional methods due to financial constraints and lack of formal education. The overreliance on labor-intensive technologies hinders progress, especially in the unorganized weaving sector, where over 90% of operations occur. Embracing modern technologies is vital to unlock the industry’s export potential. Sunrise sectors like technical textiles require greater awareness and research and development investments to realize their potential. Lastly, quality testing throughout the value chain needs stronger emphasis to enhance the ‘Brand Image’ of Indian textiles.
Way forward
Looking ahead, the industry is poised to embark on a transformative journey toward sustainability and circularity, shifting from a ‘good to have’ to a ‘must-have’ imperative. Moreover, women-led enterprises are emerging as a driving force in the industry. Globally, women are significant contributors to apparel expenditure, with women accounting for 85% of graduates from leading fashion schools. While only 14% of the top 50 major fashion brands are led by women, the Indian textile industry is fostering a wave of change. Over 27 million women are employed in this industry, with a significant presence in unorganized sectors like handlooms, handicrafts, and sericulture. Emerging sectors like technical textiles and government initiatives, such as the Production Linked Incentive Scheme, are poised to create additional employment opportunities for women.
Technical textiles are set to lead sector growth with a projected CAGR of 15%. Embracing digital technologies, regular upgrades, and blockchain-based supply chain traceability are encouraged. Collaborations with e-commerce platforms, including ONDC, will drive these industry goals and secure a promising future.
