Indian Textile Industry: A Major Employer & Contributor to GDP

TextileSector

06 November 2023, Mumbai

Why India
The Confederation of Indian Industry (CII) and the Government of Maharashtra jointly organized the TEXFUTURE 2023 Conference on November 1, 2023, where they released a report titled "Decadal Outlook for Textile Industry: Threads of Transformation for Textile Industry" prepared by CII and Primus Partners.

Video Insights
The report projects that the textile industry will increase its share of the GDP from 2.3% to about 5% by 2030. It also expects a steady annual growth of 9% in Gross Value Added (GVA) from 2021 to 2028.
Unveiled
Maharashtra's Honorable Textile Minister Chandrakant (Dada) Patil launched the report and said that the Textiles Policy 2023-28 is a major milestone in Maharashtra's development journey.
The policy aims to attract Rs 25,000 crore of investments and create 500,000 jobs, with a focus on the growth and sustainability of the industry, including Technical Textiles.
Bright prospects
Dr. Praveer Sinha, Chairman of CII Western Region and CEO & MD of Tata Power Company Ltd, emphasized the huge potential of the Indian textile industry, which accounts for only around 5% of the global trade in textiles and apparel, despite being the world's fifth-largest economy.
He urged for an integrated approach to improve value addition, competitiveness, and sustainability, which would contribute to employment generation and national output.
Policy Intervention
Devroop Dhar, Co-Founder and Managing Director of Primus Partners spoke about the government's initiatives and schemes to support the textile sector, such as the Amended Technology Upgradation Fund Scheme (ATUFS), Production-Linked Incentive (PLI) Scheme, and National Technical Textile Mission, which have incentivized investments in modern technology and infrastructure, thereby enhancing the sector's competitiveness.
Job creator: The Indian textile industry, which employs over 100 million people in textile and allied sectors, is a major employer and contributor to GDP. The industry accounts for around 2.3% of India's GDP and is expected to grow at a steady rate of 9% in the coming years.

5 key insights:

  • Growing industry: Projected to grow 9% annually from 2021 to 2028.
  • Job creator: Employs over 100 million people in textile and allied sectors.
  • Investment potential: Textiles Policy 2023-28 aims to attract Rs 25,000 crore of investments.
  • Government support: Amended Technology Upgradation Fund Scheme (ATUFS), Production-Linked Incentive (PLI) Scheme, and National Technical Textile Mission.
  • Huge potential: Indian textile industry accounts for only around 5% of the global trade in textiles and apparel.

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