Textile industry in India
The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour in textiles. The textile industry continues to be the second-largest employment generating sector in India. It offers direct employment to over 35 million in the country. According to the Ministry of Textiles, the share of textiles in total exports during April–July 2010 was 11.04%. During 2009–2010, the Indian textile industry was pegged at 55 billion, 64% of which services domestic demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of India. According to AT Kearney’s ‘Retail Apparel Index’, India was ranked as the fourth most promising market for apparel retailers in 2009.
India is first in global jute production and shares 63% of the global textile and garment market. India is second in global textile manufacturing and also second in silk and cotton production. 100% FDI is allowed via automatic route in textile sector. Rieter, Trutzschler, Saurer, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks & Spencer, Zara, Promod, Benetton, and Levi’s are some of the foreign textile companies invested or working in India.
History of Textile industry in India
The archaeological surveys and studies have indicated that the people of Harrapan civilization were familiar with weaving and the spinning of cotton for as long as four thousand years ago. Reference to weaving and spinning materials is found in the Vedic Literature. There was textile trade in India during the early centuries. A block printed and resist-dyed fabric, whose origin is from Gujarat was found in the tombs of Fostat, Egypt. This proves that Indian export of cotton textiles to Egypt or the Nile Civilization in medieval times were to a large extent. Large quantity of north Indian silk were traded through the silk route in China to the western countries. The Indian silks were often exchanged with the western countries for their spices in the barter system. During the late 17th and 18th century there were large export of the Indian cotton to the western countries to meet the need of the European industries during industrial revolution, apart from the domestic requirement at the Indian Ordnance Factories.clad in fine Bengali muslin, 18th century.
Up until the 18th century, Mughal Empire was the most important center of manufacturing in international trade. Up until 1750, India produced about 25% of the world's industrial output. The largest manufacturing industry in Mughal Empire was textile manufacturing, particularly cotton textile manufacturing, which included the production of, calicos, and muslins, available unbleached and in a variety of colours. The cotton textile industry was responsible for a large part of the empire's international trade. Bengal had a 25% share of the global textile trade in the early 18th century. Bengal cotton textiles were the most important manufactured goods in world trade in the 18th century, consumed across the world from the Americas to Japan. The most important center of cotton production was the Bengal Subah province, particularly around its capital city of Dhaka.
Bengal accounted for more than 50% of textiles and around 80% of silks imported by the Dutch from Asia and marketed it to the world, Bengali silk and cotton textiles were exported in large quantities to Europe, Asia, and Japan, and Bengali muslin textiles from Dhaka were sold in Central Asia, where they were known as "daka" textiles. Indian textiles dominated the Indian Ocean trade for centuries, were sold in the Atlantic Ocean trade, and had a 38% share of the West African trade in the early 18th century, while Bengal calicos were major force in Europe, and Bengal textiles accounted for 30% of total English trade with Southern Europe in the early 18th century.
In early modern Europe, there was significant demand for textiles from The Mughal Empire, including cotton textiles and silk products. European fashion, for example, became increasingly dependent on textiles and silks imported from The Mughal Empire. In the late 17th and early 18th centuries, The Mughal Empire accounted for 95% of British imports from Asia.
The Textile industry was the major component of economic income in India before the English colonies. "The hand-loom and the spinning-wheel, producing their regular myriads of spinners and weavers, were the pivots of the structure of that society," described by Karl Marx. Due to the abolishment of slavery in the Americas, England began to search for another source of cheap cotton, and saw India as a ripe place for this. They convinced many farmers to switch from subsistence farming to producing and exporting huge amounts of cotton, after a long period of protectionism over the English textile industry. Eventually, through the technical and marketing advances made possible by colonisation, the traditional method of artisan textile production was destroyed, and replaced with large scale factory production.
Production
India is the second largest producer of fibre in the world and the major fibre produced is cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of the Indian textile Industry is cotton based. The strong domestic demand and the revival of the Economic markets by 2009 has led to huge growth of the Indian textiles industry. In December 2010, the domestic cotton price was up by 50% as compared to the December 2009 prices. The causes behind high cotton price are due to the floods in Pakistan and China. India projected a high production of textile. There has been increase in India's share of global textile trading to seven percent in five years. The rising prices are the major concern of the domestic producers of the country.- Man Made Fibres: This includes manufacturing of clothes using fibre or filament synthetic yarns. It is produced in the large power loom factories. They account for the largest sector of the textile production in India. This sector has a share of 62% of the India's total production and provides employment to about 4.8 million people.
- The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It provides employment to a huge number of people but its productions and employment is seasonal depending upon the seasonal nature of the production.
- The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their funds. Its market share is 13%. of the total cloth produced in India.
- The Woolen Sector: India is the 7th largest producer. of the wool in the world. India also produces 1.8% of the world's total wool.
- The Jute Sector: The jute or the golden fibre in India is mainly produced in the Eastern states of India like Assam and West Bengal. India is the largest producer of jute in the world.
- The Sericulture and Silk Sector: India is the second largest producer of silk in the world. India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main types of silk produced in the country. It is a labour-intensive sector.
Cotton textile
India exports yarn to Japan, United States, United Kingdom, Russia, France, Nepal, Singapore, Sri Lanka and other countries. India has the second-largest installed capacity of spindles in the world, with 43.13 million spindles after China. Although India has a large share in world trade of cotton yarn, its trade in garments is only 4% of the world's total.
Jute textiles
India is the largest producer of raw jute and jute goods and the third largest exporter after Bangladesh. There were about 80 jute mills in India in 2010–11, most of which are located in West Bengal, mainly along the banks of the Hooghly River, in a narrow belt.In 2010-2011 the jute industry was supporting 0.37 million workers directly and another 400,000 small and marginal farmers who were engaged in the cultivation of jute.
Challenges faced by the industry include stiff competition in the international market from synthetic substitutes and from other countries such as Bangladesh, Brazil, Philippines, Egypt and Thailand. However, the internal demand has been on the rise due to Government policy of mandatory use of jute packaging. To stimulate demand, the products need to be diversified. In 2005, the National Jute Policy was formulated with the objective of improving quality, increasing productivity and enhancing the yield of the crop.
The main markets for jute are the United States, Canada, Russia, United Kingdom and Australia.