Primary objective of the SITP is to provide the industry with worldclass state of the art infrastructure facilities for setting up their textile units. The scheme would facilitate textile units to meet international environmental and social standards. SITP would create new parks of international standards at potential growth centres. This scheme envisages engaging of a panel of professional agencies for project identification and execution.
India - Knitting the future
India is among the world's largest producers of textiles and garments. The Indian domestic textile and apparel industry contributes 2% to India’s GDP, 14% of industrial production, 27% of the country’s foreign exchange inflows and constitutes 13% of country’s export earnings. Employing over 45 mn people the textile sector has the second largest employer after agriculture sector.
- Foreign direct investment (FDI) in textile sector more than doubled to USD 618.95 mn during 2016-17 from USD 230.13 mn in the previous fiscal
- By 2024, India is is expected to reach USD 300 bn in exports
100% FDI is allowed under automatic route
- Largest producer of cotton & jute in the world
- Second largest producer of polyester, silk & fibre in the world
- Second largest employment provider in India
Indian textile industry was valued at USD 137 bn in 2015-16 and is expected to reach USD 223 bn by 2021.
The sector is highly diversified with a wide range of segments, like products of traditional handloom, handicrafts, wool, silk products to the organised textile industry comprising of spinning, weaving, processing, apparel and garment characterised by the use of capital-intensive technology for mass production of textile products.
Out of USD 137 bn of Indian textile market, USD 97 bn is catered through domestic consumption. The remaining market of USD 40 bn is export market.
Further domestic consumption (USD 97 bn) is divided into household consumption (USD 83 mn) and technical textiles (USD 14 bn). 9% of the world’s total consumption of technical textiles is made in India. Exports (USD 40 bn) has textile exports (USD 23 bn) and apparel exports (USD 17 bn).
- Expected sector CAGR (2016-2021E)
- GDP contribution
- Share of textile exports of overall exports
- Employment generated (no. of people)
FDI growth in 2016-17 viz-a-viz 2015-16
FDI (in USD) in textile sector (including dyed, printed) during Apr2000-Jun2017
FDI is allowed under the automatic route in the textile sector; investment is subject to all applicable regulations and laws.
August 2017 - Toray, a Japanese MNC to invest USD 152.9 mn in manufacturing facility in Sri City
June 2017 - Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing USD 60 mn in the next 4 years.
March 2015 - Grasim Industries has invested USD 15 mn to develop its first fabric brand, Liva', which it will distribute through 1,000 outlets as part of a plan to stay in sync with changing consumer behaviour.