India has abundant raw materials when it comes to textiles. It is the largest producer of cotton, silk jute and textile raw materials like PSF, VSF and PFY. So it is natural that India is also the largest producer of textiles and garments. The textile industry has two broad segments, namely handloom, handicrafts, sericulture, power looms in the unorganised sector and spinning, apparel, garmenting, ready-mades in the organised sector. Indian textile industry is expected to reach a market size of USD 223 billion by 2021. It is also the largest employer after agriculture providing direct employment of 45 million, a major contributor of foreign exchange. The government of India also takes several initiative like allowing 100% FDI, Technical Up-gradation Fund Scheme (TUFS), technical support
India's silk production which is slated at 28000 metric tonnes is growing at an annual growth rate of 19% and is expected to reach self sufficiency by the year 2020. Currently, China is the global largest produce of silk which has a lion's market share of 80%. India's share is estimated at 13% with remaining 7 % is served by other countries. However, China only produces mulberry variety of silk, while India produces other varieties, including Tasar and Muga. Indian imports have come down from 6500 mt to 3500 mt over the last few years. Overall India is expected to reach production of 34000 metric tonnes by 2020.
Tamil Nadu government is planning to set up a textile park in Irur near Coimbatore in Tamil Nadu. The project will be developed by state Industrial promotion organization SIPCOT. The proposal of the textile park has attracted a large number of entrepreneurs with as many as 31 of them from different parts of the state expressing interest to set up units. The textile park will mainly cater to the needs of export-oriented readymade garments units and production of yarn. TNWSB has planned to provide adequate water supply to the site, where the park will be situated on an area of 40.35 hectares. There were also a sanction of Rs. 6.5 million for a tar road connecting the site to national highway.
Union Textile Ministry's has launched North-East Region Textile Promotion Scheme (NERTPS) to boost textile exports, increase jobs and curb the migration of workers. The scheme aims to develop and modernise the textile sector by providing region-specific flexibility in execution with a massive funds infusion. With NERTPS, the textile ministry has been providing Rs.18 crore each for setting up of a ready-made garment manufacturing unit or 'Apparel and Garment Making Centre' in each of 8 north eastern states. The scheme will also provide computerized sewing machines for training.
Chhattisgarh State Industrial Development Corporation (CSIDC) is planning to develop a textile park in Tilda in Raipur in Chhattisgarh. The corp has identified a 30-hectare piece of land and will develop a textile park with one stop integrated facilities with manufacturing support, welfare and common infrastructure facilities to the prospective textile industries. The park will have testing laboratory, design centre, training centre, trade and display centre, conferencing and meeting facilities, warehouse/raw material depot, packaging unit, canteen and worker hostels and recreation centre. The textile park will entail investment of Rs. 1100 million and will have ginning and pressing, spinning, weaving, processing, and garmenting facilities.
Cotton production is likely to decline by over 14 per cent in financial year 2015-2016 which will be the lowest for the last five years. The crop is in decline for last five year from 35.2 million bales to 33.0 million bales in 2015-16. (estimate). The decline assumes significance in states like Andhra Pradesh, Telangana and Maharashtra where suicides by farmers were a matter of concern. Cotton sowing started weak this year on low soil moisture following deficient monsoon rainfall. According to Gupta, the overall acreage has declined to 11.76 million hectares from 13.08 million hectares a year ago. The 15 per cent decline in average acreage in Karnataka, Andhra Pradesh, Telangana, Gujarat and Maharashtra was likely to hit farmers. In Karnataka alone, the cotton output was estimated at 1.7
Kerala government is planning to set up a textile park in Angamaly with an investment of Rs. 110 million. The proposed 40,000-sq. ft. facility will comprise a design factory with advanced facilities; space for individual units with 50 to 75 workers as well as a training institute. Around 10% of the project cost will be borne by Mahila Apparels Cluster. At present there are 73 units working out of the garments cluster, which has a turnover of Rs. 1.25 crore annually. Each of the units has an average worker strength of 10 to 15.
Indian textile sector is set to receive some much needed assistance in form of Amended Technology Upgradation Fund Scheme (ATUFS) . The Cabinet Committee on Economic Affairs (CCEA) approving the amended TUFS, which was originally introduced in 1999. While replacing the Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS), the new scheme will be implemented across two broad categories. For the sub sectors of apparel, garment and technical textiles, upto 15% subsidy would be provided on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years. The remaining sub-sectors would be eligible for subsidy at a rate of 10%, subject to a ceiling of Rs 20 crore on similar lines. Being the largest employer after agriculture and accounting of 14%