Textile turnover to hit Rs 3,40,000 crore

New Delhi, Nov 13 | Updated: Nov 14 2005, 05:30am hrs
Rating and research agency Icra has projected that the size of the textile industry would increase to around Rs 3,40,000 crore with the exports share likely to increase to around 38% from the current 29% of the countrys total textile and clothing market.

According to its latest report on the Indian textile industry, rising per capita levels are expected to lead to high growth in household demand for textiles (which is expected to grow to 52.5%).

Increasing urbanisation is also likely to contribute to this rise in demand. As the medium term outlook on gross domestic product (GDP) is higher on account of rising world economy the manufacturing sector is expected to perform well.

Also, with the agricultural and services sectors expected to continue to perform as in the recent past, readymade garments and knitwear segments are expected to perform better than the other segments, said the report.

MIDAs KNIT
Rising per capita levels are expected to lead to high growth in household demand
The 15-34 age-group will act as a major growth catalyst
Growth in organised retail likely to contribute to the increase
Restrictions on China by the US has given an opportunity to India to increase its exports
Technical textiles, which account for around 10% of the total textile and clothing market of the country are expected to grow at a compound annual growth rate of 12% by 2008. These include Mobiltech (textiles used in automobiles), oekotech (used in applications of municipal solid waste and industrial hazardous waste).

The 15-34 age-group is the largest consuming class for clothing in India. As this age group is expected to grow at a higher rate than the rest of the population it will act as a major growth catalyst for the clothing market.

Further, growth in organised retailing is also likely to contribute to increase in readymade apparel market said the report.

In the exports market, as restrictions have been placed on China by the US and EU, India has an opportunity to increase its exports.

The other countries are in less strong position to maximise their position.

However, to realise the potential, Indias textile producers will need to raise productivity through gains in efficiency.