The ITJ, in an exclusive report, presents the pulse of the industry in summarised statements about prospects in 2015 from a cross-section of industry leaders, experts and concerned authorities.
OUTLOOK 2015
What are the upsides and the downsides to India´s textile story? With the Modi wave and the new Government sweeping the country, came the clarion call of ´Make in India´. The Vision, Strategy and the Action Plan for Indian Textile and Apparel Sector, submitted by the Expert Committee to the Textile Ministry, speaks of 20% growth in exports over the next decade and an annual growth rate of 12% in the domestic market. ´If Vietnam could achieve a peak export growth rate of 30% and Bangladesh a growth rate of 18%, there is no reason why India, provided it takes the necessary steps, cannot achieve better growth,´ the Plan rhetorically poses this question. If all goes well, India should by then have a market share of 20% of the global textile and apparel trade from the present level of 5%.
But will India achieve this? What are its prospects? What are its hopes? What is in store for the textile industry in 2015?
Policy to treble global market share
´What developments in Gujarat textile industry is happening should happen in the entire country. The ministry will soon firm up the draft of the National Textiles Policy, which aims at providing a road map for the sector. The Ministry has consulted various stakeholders on the matter. We have taken into consideration the opinions of state textiles ministers too. The key objectives of the new Textiles Policy include developing a vision statement for the sector for the next decade so as to treble the market share from 4 per cent at present. Besides, it also aims to formulate a stable and fibre neutral raw materials policy to benefit the entire value chain and to address modernisation and mechanisation needs of the textile industry. While the export quota regime has been removed in 2004, recent trends in the global textile industry offer an enormous opportunity to Indian industry to enhance its share in world trade with a supportive policy framework.´
Global vs Domestic Scenario
The global trade of textile and garments was approximately $781 billion in 2013. This is almost 4.6 per cent of the trade of all commodities, which is estimated at approximately $17 trillion. From 2008 to 2013, the global textile and garment trade has grown at a CAGR of 4 per cent.
The current global garment market is estimated at approximately $1.15 trillion which form nearly 1.8 per cent of the world GDP. Almost 75 per cent of this market is concentrated in EUR27, USA, China and Japan. An analysis of per capita spend on garment in various countries shows a significant difference between numbers in developed and developing economies. Within the major markets, India has the lowest per capita spend on garment ($37) which is only 3 per cent of the highest one viz. Australia ($1,131).
The top five textile and garment exporting nations are China, India, Italy, Germany and Turkey. China is the single largest exporter with 39 per cent share while India stood at a distant second place with 5 per cent share.
The top five textile and garment importing nations are US, China, Germany, Japan and United Kingdom. USA is the largest importer with a share of 17 per cent of the total global trade. The Indian textile and garment industry has an important presence in the country’s economy through its contribution to industrial output, employment generation, and the export earnings. It contributes almost 5% to the $ 1.8 trillion Indian economy whereas its share in Indian exports stands at a significant 13 per cent. India is the second largest exporter of textile and garment goods with a global trade sh