The future of the Textile industry in India shimmers with promise. Backed by Government initiatives and embracing innovation, the industry can weave a path towards robust growth.
The textile industry empowers rural communities and provides employment opportunities for countless individuals. They also act as a potential driver for economic growth by powering exports to attract foreign investments and significantly contributing to the nation’s GDP. As the world moves towards innovation this industry also embraces it and focuses on sustainability for a brighter future.
The industry’s strength lies in its robust production base, which includes both natural fibres like cotton, jute, silk, and wool, as well as synthetic and man-made fibres such as polyester, viscose, nylon, and acrylic. The textile sector plays a crucial role in India’s economy, contributing 2.3% to the country’s GDP, 12% to exports and13% to industrial production.
During the period of 2018 to 2023 the Indian textile industry saw a decline of 11.69% from $16.24 billion to $14.34 billion. In order to revive, the government has planned to adjust its Production Linked Incentive (PLI) scheme to include product lines like Innerwear and t-shirts. The industry also wants to make the scheme more accessible by concentrating on the labor intensive apparel sector. The market for Indian textiles and apparel is expected to grow at a 10% CAGR, reaching US$ 350 billion by 2030.
India ranks as the world’s third-largest exporter of textiles and clothing, with exports anticipated to hit US$ 100 billion. The industry employs around 4.5 crore workers, including 35.22 lakh handloom workers, making it a significant source of employment.
India’s position in the global textile market is strong, with the country being the world’s largest producer of cotton. The technical textile sector, including medical textiles and composites, shows promising growth potential.
Some of the listed textile sector companies in Indian Capital market include Raymond which was incorporated in 1925. Raymond plans to expand its Ethnix retail brand to over 200 stores by 2025. For the next two years, Raymond targets to achieve 18-20% annual growth in presales for their lifestyle business.
Grasim Industries was established on August 25, 1947 in Gwalior. Grasim with its Viscose Staple Fiber segment is looking for opportunities to debottleneck its capacity to achieve 4-5% growth compared to that of the previous year.
Arvind Ltd started its journey as Arvind Mills Ltd in 1931. As a company, it started manufacturing high-end superfine cotton textiles and fabrics. Arvind Ltd expects its garments business to grow by 25% in FY 25. To increase the garment capacity from 45 million pieces to 60 million pieces over the next year the company continues to invest in its operations. The company aims to get a 20% return on capital employed (ROCE) from its overall textile business.
KPR Mills was established in 1984, the company manufactures and markets various ranges of products like cotton yarn, melange and compact yarn, ready-made knitted garments and knitted fabrics. The company is currently undergoing a brownfield expansion to increase its garment capacity from 157 million pieces to 177 million pieces on an annual basis.
Ganesha Ecosphere was established on 30th October 1987. The company started its journey by producing Dyed & Doubled Yarn. Now the company manufactures Spun Yarn, Recycled Polyester Staple Fibre and Dyed Texturised Yarn. Recently FII’s in the last quarter have increased their stake from 0.89% to 9.94%. The company expects some recovery in the textile sector around July – August which may improve their performance.
Collaborations between textile leaders, research institutions and artisans may lead to creating a unique identity for Indian textiles in the global market. Addressing the challenges like infrastructure bottlenecks, environmental concerns and skill gaps ensures the Indian industry to scale up and position it as a global powerhouse.
Textile industry in India shimmers with promise
