1. Indian Textile and Apparel
Overview
India is today recognized as one of the best sourcing destinations for garments, textiles,
accessories and finish: It provides a perfect blend of fashion, design, quality, patterns, textures,
colors and finish. Manufacturers here are ready to innovate, be flexible on quantities, have
hands- on approach to quality control and keep the integrity on deadlines.
As the world’s second largest producer of textile and garments, India’s garments exports
totaled US$ 10.70 billion during FY 2009-10, giving an inevitable market share of 3.2%. The
Americas EU, much of Asia and Middle East are India’s clients.
The Industry proudly supports 7 million people as a part of its workforce, and aims to double
this figure by 2011-12; even today it is the second largest provider of employment in the
country. For every INR 100000 Invested in the industry, an average of 7 additional jobs created.
The Apparel sector also contributes to 7% of India’s total exports recording decline of 0.35% in
2009-10 against 2008-09 due to global downturn.
Textile and Apparel’s contribution to India’s GDP

2. Indian Textile and Apparel Industry’s Size
India's textile and apparel (TandA) industry (domestic and exports) is expected to grow from
Rs.3.27 lakh crore ($70 billion) to Rs.10.32 lakh crore ($220 billion) by 2020, according to a
research report by Technopak Advisors, a leading management consultancy.
The report says that the domestic TandA market size in 2009 was Rs.2.18 lakh crore ($4 billion)
and is expected to grow at a compounded annual growth rate (CAGR) of 11 per cent to Rs.6.56
lakh crore ($140 billion) by 2020. The domestic apparel retail market was worth Rs.1.54 lakh
crore ($33 billion) in 2009 and will touch Rs.4.70 lakh crore by 2020.
Segment wise Market size and Projections
Even though, at present, the menswear has a majority share in the apparel market (43 per cent)
and is growing at 9 per cent, women's wear is growing at a higher rate of 12 per cent and is
expected to reach 43 per cent share in 2020 from the current 37 per cent of the market. Apart
from this, kids' wear is growing rapidly with higher growth in girl's wear (11 per cent) than boys
wear (10 per cent). The report said that the home textile market is expected to grow 9 per cent
CAGR from Rs.15,570 crore in 2009 to Rs.40,000 crore by 2020.

3. Indian Exports: Potential for Higher Growth

4. The report said that India has the potential to increase its export share in world trade from the
current 4.5 per cent to 8 per cent to reach $80 billion by 2020. The high growth of Indian
exports is possible due to increased sourcing shift from developed countries to Asia and India's
strengths as a suitable alternative to China for global buyers. Investments to the tune of Rs.3.20
lakh crore ($68 billion) across the textile supply chain will be required by 2020 to tap the
potential market created due to the growth of the industry and the investment required in the
garment sector by 2020 is $14 billion and for processing $19 billion.
Conclusion
The growth drivers of the industry, as predicted, shall be innovation across product, design, and
brand, channel and also business processes. Further, it is important for the industry to identify
and create new mega clusters — Madurai, Mundra, Ambala and Mangalore — having
tremendous potential for manufacturing. There is need for collaborative and aggressive
entrepreneurship, increasing scale through mergers and acquisitions, divestments and bringing
forth positive outlook for the industry to attract the best managerial and operational talent to
provide further impetus for growth within the industry.
Government’s Initiatives
The government has provided a new lease of hope with the introduction of enhanced subsidy
allocation for modernization of the textiles industry to ` 15,404 crores from earlier sanction of `
8,000 crores for the current Plan ending 2012.
The decision to increase the outlay and re-structure the Technology Upgradation Fund (TUF)
was taken by the cabinet committee on Economic Affairs recently.
Under the restructured scheme, 5 per cent interest subsidy and 10 per cent capital sops would
be provided on brand new looms.
The Indian Textile Industry contributes 14 per cent of the total manufacturing to global brands
like Nike, Reebok, Pepe Jeans, Armani and Versace for sourcing their merchandise from the
country.
Growth Opportunities
Yarn producers should forward integrate into garments to improve their profitability. This
strategy carries the costs and risks of moving commodity products to differentiated products.
Large garmenting companies should integrate backwards till the weaving stage. This will enable
them to emerge as bulk suppliers to global companies.
Companies manufacturing high-fashion short-run products may however choose to operate as
individually run units. They should focus on strengthening their design and fashion capabilities.
Depending on the risk appetite, some companies may focus on building and distributing their
own brands globally. It is a high margin, high risk business.