TEXTILE AND APPAREL INDUSTRY OF INDIA- GROWH &PROGRESS A ,PERSPECTIVE.
India’s textile & apparel industry (domestic and exports) is expected to go from US$70 billion to US$220 billion by 2020.
A study report says that the domestic textile & apparel market size in 2009 was $4 billion and is expected to grow at a compounded annual growth rate of 11 percent to $140 billion by 2020. The domestic apparel retail market was worth $33 billion in 2009 and will touch $100 billion by 2020.
Even though at present the menswear has a majority share in the apparel market (43 percent) and is growing at 9 percent, women’s wear is growing at higher rate of 12 percent and is expected to reach 43 percent share in 2020 from the current 37 percent of the market. Apart from this, kid’s wear is growing rapidly with higher growth in girl’s wear (11 percent) than boys wear (10 percent). The report said that the home textile market is expected to grow 9 percent compounded annual growth rate from Rs.15,570 crores in 2009 to Rs.40,000 crores by 2020.
The global textile and apparel trade is recovering after recession of 2008-09, and is expected to reach $1 trillion by 2020 from $510 billion now. The growth in trade is driven by increased outsourcing of western/developed countries towards lower cost countries in Asia.
The report said that India has the potential to increase its export share in world trade from the current 4.5 Percent to 8 percent to reach $80 billion by 2020. The high growth of Indian exports is possible due to increased sourcing shift from developed countries to Asia and India’s strength as a suitable alternative to Chine for global buyers. Investments to the tune of $68 billion across the textile supply chain will be required by 2020 to tap the potential market created due to the growth of the industry and the investment required in the garment sector by 2020 is $14 billion and for processing $19 billion.
There is need for collaborative and aggressive entrepreneurship, increasing scale through mergers and acquisition, disinvestments and bringing forth positive outlook for the industry to attract the best managerial and operational talent to provide further impetus for growth within the industry.
