India's Textile Industry Poised for Major Growth by 2030

Summary

Sources

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The textile and apparel industry in India plays a pivotal role in the nation's economy, contributing two point three percent to the Gross Domestic Product, thirteen percent to industrial production, and twelve percent to the country's exports. As of the latest data, this sector not only stands as a significant contributor to India's economic framework but also shows promising signs of substantial growth. By the end of this decade, the textile industry's contribution to the GDP is expected to more than double, rising to approximately five percent. Presently, India holds the position of the world's third-largest exporter of textiles and apparel. The nation ranks among the top five global exporters across several textile categories. The projected growth for the Indian textiles and apparel market is robust, with an expected Compound Annual Growth Rate of ten percent, aiming to reach three hundred and fifty billion U.S. dollars by the year twenty thirty. Concurrently, textile exports are anticipated to hit the one hundred billion U.S. dollars mark. The technical textiles sector in India, which includes products with applications ranging from automotive to healthcare, shows immense potential with a predicted growth rate of ten percent and an increased penetration level of nine to ten percent. This sector positions India as the fifth-largest technical textiles market globally. Particularly noteworthy is the medical textiles market, which comprises products like drapes and gowns, expected to grow at fifteen percent and reach twenty-two point four five million U.S. dollars by twenty twenty-seven. Additionally, the composites market in India, which utilizes materials such as fiberglass or carbon fiber for various applications, is expected to reach an estimated value of one point nine billion U.S. dollars by twenty twenty-six, growing at a Compound Annual Growth Rate of sixteen point three percent. India's status as the world's largest producer of cotton significantly fuels the textile industry. The nation's cotton output for the year twenty twenty-three to twenty twenty-four is projected at thirty-one point six million bales, with production anticipated to reach seven point two million tonnes by twenty thirty. Today, the Indian textile industry employs approximately forty-five million workers, including three million five hundred twenty-two thousand handloom workers, highlighting its role as a major employment generator. Thus, the textile and apparel sector in India is not only a cornerstone of the industrial and economic activity but also a rapidly evolving field with significant advancements in technical, medical textiles, and composite materials, promising a future of global leadership and innovative expansion in the textile domain. Continuing from the promising outlook of the Indian textile and apparel industry, the projected growth trajectory is set to make significant strides by the year twenty thirty. The market is expected to burgeon to a valuation of three hundred and fifty billion U.S. dollars, propelled by a Compound Annual Growth Rate of ten percent. This remarkable expansion is underpinned by several key factors that are catalyzing the industry's upward trajectory. A primary driver of this growth is the increased global demand for textiles and apparel. As economies around the world recover and expand, the appetite for both basic and luxury textile goods continues to surge. This increased demand is not just for traditional textiles but also for specialized products like technical and medical textiles, which have seen a rise in utility across various sectors. Advancements in textile technology also play a crucial role in this growth. Innovations in fabric production, processing techniques, and sustainability practices are making Indian textiles more competitive and attractive on the global stage. These technological advancements are crucial in meeting the international standards required by overseas markets, thereby boosting export capabilities. Speaking of exports, the industry is aiming to elevate its export revenue to reach one hundred billion U.S. dollars. This ambitious target is supported by the robust production of natural fibers, particularly cotton, for which India is the world's largest producer. The availability of high-quality, indigenous cotton allows for a stable supply chain and plays a significant role in the industry's export strategy. By leveraging its strengths in cotton production, India is well-positioned to enhance its export portfolio, including a range of textile goods from yarn to finished apparel. Moreover, the expansion is also supported by governmental initiatives and policies designed to foster growth in the textile sector. These policies aim to streamline processes, reduce bottlenecks, and provide financial and infrastructural support to textile manufacturers. This conducive policy environment, coupled with the factors previously mentioned, sets the stage for a dynamic phase of growth and expansion in India's textile industry, reinforcing its status as a global powerhouse in the textile and apparel market.