Under ATUFS, the government provides credit linked Capital Investment Subsidy (CIS) to promote EoDB in the country and achieve the vision of generating employment and promoting exports through 'Make in India' with 'Zero effect and Zero defect' in manufacturing.
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 and accounts for 14% of industrial production, 27% of the country’s foreign exchange inflows and 13% of country’s export earnings. The textile sector that employs 45 mn people in India, is second only to agriculture sector in terms of employment.
- Foreign direct investment (FDI) in textile sector more than doubled to USD 618.95 mn during 2016-17 from USD 230.13 mn, a year ago.
- Exports in the textile sector is expected to reach USD 300 bn by 2024.
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 employer 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 textile sector in India is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool and silk products to the organised textile industry. Organised textile industry is characterised by the use of capital-intensive technology for mass production of textile products and includes spinning, weaving, processing, apparel and garment.
The domestic textile industry stood at USD 137 bn in 2016, witnessing a growth of 27% from a year ago. Out of USD 137 bn, textile worth USD 97 bn was domestically consumed while the remaining portion worth USD 40 bn was exported in the world market.
Further, domestic consumption of USD 97 bn was divided into household consumption at USD 83 bn and technical textiles at USD 14 bn. While, exports comprised of textile exports at USD 23 bn and apparel exports at USD 17 bn. India also meets the needs of 9% of the world’s total consumption of technical textiles.
- Expected sector CAGR (2016-2021E)
- GDP contribution
- Share of textile exports of overall exports
- Employment generated
FDI growth in 2016-17 viz-a-viz 2015-16
FDI (in USD) in textile sector (including dyed, printed) during April 2000 - December 2017
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.