The Union Minister of Textiles recently conducted a comprehensive review of the initiatives being undertaken by the Ministry of Textiles to boost the textiles sector. This article delves into the Indian textiles and garments industry, its significance, the challenges it faces, the major initiatives aimed at improving it, and the way forward.
Overview of the Textiles & Garments Sector
The textiles and garments industry is labour intensive, providing employment to 45 million people in India, making it second only to the agriculture sector in terms of employment. United under the heritage and culture of India, it stands as one of the oldest industries in the Indian economy.
The industry can be divided into two segments. The unorganised sector comprises small-scale operations employing traditional tools and techniques. It includes handloom, handicrafts, and sericulture (silk production). On the other hand, the organised sector uses modern machinery and techniques in the spinning, apparel, and garments segment.
Significance of the Textiles Sector
This sector contributes significantly to the Indian economy. Accounting for 2.3% of the Indian Gross Domestic Product, 7% of Industrial Output, 12% to the export earnings, and employing more than 21% of the total workforce.
India stands as the 6th largest producer of Technical Textiles globally, with a 6% Global Share, and the largest producer of cotton & jute worldwide. These technical textiles are functional fabrics used across various industries like automobiles, civil engineering and construction, agriculture, healthcare, industrial safety, personal protection, etc. Moreover, India is the second largest producer of silk globally and 95% of the world’s hand woven fabric originates from here.
Challenges Faced by the Textiles Sector
Despite its significant contributions, the textiles sector in India faces several challenges. The sector is highly fragmented and dominated by the unorganized sector and small-medium industries. It is plagued with outdated technology, especially in small-scale industries, causing difficulties in meeting global standards in the highly competitive market.
There are also issues related to the tax structure. The introduction of Goods and Service Tax (GST) has made garments expensive and uncompetitive in both domestic and international markets. Other challenges include stagnant exports, lack of scale in production facilities, and limited foreign investment due to the aforementioned challenges.
Government Initiatives for Textiles Sector
To counter these hurdles, several initiatives have been launched. These include the Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation, the Scheme for Integrated Textile Parks (SITP) to assist small-medium entrepreneurs, and the SAMARTH Scheme for capacity building in the textile sector.
Furthermore, initiatives like the North East Region Textile Promotion Scheme (NERTPS), Power-Tex India, Silk Samagra Scheme, Jute ICARE, and National Technical Textile Mission aim at promoting textiles industry in the North East Region, ensuring research and development in power loom textiles, improving the quality and productivity of domestic silk, addressing issues faced by jute cultivators, and positioning India as a global leader in technical textiles respectively.
The Way Forward
The textile sector has significant potential which can be realized through innovation, modern technology, and facilitation. There is a need for mega apparel parks and common infrastructure for the textile industry. Modernisation of machinery and technology is essential, and a comprehensive blueprint for the textile sector needs to be drawn up and executed to maximize this sector’s potential.
