Textile Industry Overview Textile Industry is one of the largest and oldest industries in India.

It has a significant role in India as it fulfils the essential and basic need of people. Textile Industry in India stands at unique place and has maintained a sustainable growth over the years. This is a self-reliant and independent industry and has great diversification and versatility. Textile Industry in India provides great contribution for the development of economy. It is the second largest textile industry in the world after China. It provides ample employment opportunities to people belonging to all classes. After agriculture this industry provides employment to maximum number of people in India employing 35 million people. Textile Industry represents the rich culture, tradition, heritage & economic well-being of Country with diversified range and versatility. At the same time industry is competitive Enough to fulfill different demand patterns of domestic and global markets. Indian Textile Industry plays vital role in country's economic development and contributes 14% to industrial production in the country. Textile Industry contributes around 4% of GDP, 9% of excise collections, 18% of employment in industrial sector, and 16% share in countrys export. Indian Textile Industry is valued at US $36 bn. The development of Indian Textile Industry started in 1985. This was the year, for the first time Textile sector was considered as an important industry and a separate policy was formulated for sectors development. In the year 2000, National Textile Policy was announced. With further development Textile Industry came out of Quota Regime of Import Restrictions under the Multi Fiber Arrangement (MFA). This development came on 1st January 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing. Because of the elimination of quota restrictions, most of the developing countries now can develop the potential market at both domestic and international level. These countries can develop the industry expertise and can have competitive advantage through implementing new technology, more skilled labor will improved distribution channel, cost effective operation and production with greater value addition in each

step of value chain. Moreover it will help for Foreign Direct Investment in industry that will create great opportunity to strengthen the sector.Some of the strengths of Indian Textile Industry are large and potential domestic and international market, large pool of skilled and cheap labor, well-established industry,promising export potential etc

HISTORY OF TEXTILE No one knows when exactly the spinning and weaving of textile began. It has been said that people knew how to weave even 27000 years ago. This was even before humans were able to domesticate animals. The oldest actual fragment of cloth found was in southern Turkey. People used fibers found in nature and hand processes to make fibers into cloth. Even though high technology was not available, skilled weavers created a wide variety of fabrics. Dyeing of fabrics was done to satisfy the universal human need for beauty. Within time, more complex social and political organization of people evolved. With the growth of cities and nations, improvements in technology came into place and there was a substantial development in the international trade, both of which involved textiles. Chinese textile was considered to be the most significant in international trade. Historians have claimed that silk from China has reached ancient Greece and Rome along a trade route called the Silk Road in the latter part of the second century B.C. and Egypt in 1000 B.C. The Romans also imported cotton from nearby Egypt and from India. Archeologists have found facilities for dyeing and finishing cotton fabrics in settlements throughout the Roman world. During the middle ages, the production and trading of the plant called woad, an important source of dye, was a highly developed industry. During the fifteenth century, Trade Fairs in southern France provided a place for the active exchange of wools from England and silks from the Middle East. The economic activities surrounding these events gave rise to the first international banking arrangements. Even the discovery of America was a result of the desire of Europeans to find a faster route

not only to the spices but also to the textiles of the Orient.Textile trade quickly took root in America, as colonists sold native dyes such as indigo and cochineal to Europe and bought cottons from India. Although advances were being made in the technology of textile production, the manufacture of cloth in Western Europe in 1700 was still essentially a hand process. Yarns were spun on a spinning wheel and fabrics were woven by hand-operated looms. A major reorganization of manufacturing of a variety of goods occurred during the latter half of the 1700s in Western Europe. These changes, known as the Industrial Revolution, altered not only technology, but also social, economic, and cultural life. The production of textiles was the first area to undergo industrialization during the seventeenth and eighteenth centuries as the result of an economic crisis. Good quality textile products, produced inexpensively in India and the Far East, were gradually replacing European goods in the international market. In Britain, it became imperative that some means be found to increase domestic production, to lower costs, and to improve the quality of textiles. The solution was found in the substitution of machine or nonhuman power for hand processes and human power. Many important inventions, most importantly spinning machines, automatic looms, and the cotton gin, improved the output and quality of fabrics. These inventions provided the technological base for the industrialization of the textile industry. Each invention improved one step of the process. For example, an improvement that increased the speed of spinning meant that looms were needed that consumed yarn more rapidly. More rapid yarn production required greater quantities of fiber. The growth of the textile industry was further hastened by the use of machines that were driven first by waterpower, then by steam, and finally by electricity. The textile industry was fully mechanized by the early part of the nineteenth century. The next major developments in the field were to take place in the chemists laboratory. Experimentation with the synthesis of dyestuffs in the laboratory rather than from natural plant materials led to the development and use of synthetic dyes in the latter half of the nineteenth century. Other experiments proved that certain natural materials could be dissolved in chemical solvents and re-formed into fibrous form. By 1910, the first

plant formanufacturing rayon had been established in the United States. The manufacture of rayon marked the beginning of the manufactured textile fibers industry. Since that time, enormous advances have been made in the technology for every field in the textile industry. Today, the textile industry utilizes a complex technology based on scientific processes and vast economic organizations. With the application of advanced technology to the textile field, textile use has expanded from the traditional areas of clothing and home furnishings into the fields of construction, medicine, aerospace, sporting goods, and industry. These applications have been made possible by the ability of textile scientists to utilize textile fibers, yarns, and fabrics for specific uses. At the same time that textile technology is making strides in new directions, the fabrics that consumers buy for clothing and household use also benefit from the development of new fibers, new methods of yarn and fabric construction, and new finishes for existing fibers and fabrics.

Today, a huge international industrial complex encompasses the production of fiber, spinning of yarns, fabrication of cloth, dyeing, finishing, printing, and manufacture of goods for purchase. Consumers purchase many different products made of textiles. The story of the journey that these products make as they progress from fiber to yarn to fabric to finished product is not just the story of spinning yarns, weaving or knitting fabric, or constructing the end product. It is also the story of a complex network of interrelated industries. HISTORY OF INDIAN TEXTILE INDUSTRY The history of textiles in India dates back to nearly five thousand years to the days of the Harappan civilization. Evidences that India has been trading silk in return for spices from the 2nd century have been found. This shows that textiles are an industry which has existed for centuries in our country. Recently there has been a sizeable increase in the demand for

Indian textiles in the market. India is fast emerging as a competitor to China in textile exports. The Government of India has also realized this fact and lowered the customs duty and reduced the restrictions on the imported textile machinery. The intention of the governments move is to enable the Indian producers to compete in the world market with high quality products. The results of the governments move can be visible as Indian companies like Arvind Mills, Mafatlal, Grasim; Reliance Industries have become prominent players in the world. The Indian textile industry is the second largest in the world-second only to China. The other competing countries are Korea and Taiwan. Indian Textile constitutes 35% of the total exports of our country. The history of apparel and textiles in India dates back to the use of mordant dyes and printing blocks around 3000 BC. The foundations of the India's textile trade with other countries started as early as the second century BC. A hoard of block printed and resist-dyed fabrics, primarily of Gujarati origin, discovered in the tombs of Fostat, Egypt, are the proof of large scale Indian export of cotton textiles to the Egypt in medieval periods. During the 13th century, Indian silk was used as barter for spices from the western countries. Towards the end of the 17th century, the British East India Company had begun exports of Indian silks and several other cotton fabrics to other economies. These included the famous fine Muslin cloth of Bengal, Orissa and Bihar. Painted and printed cottons or chintz was widely practiced between India, Java, China and the Philippines, long before the arrival of the Europeans. India Textile Industry is one of the largest textile industries in the world. Today, Indian economy is largely dependent on textile manufacturing and exports. India earns around 27% of the foreign exchange from exports of textiles. Further, India Textile Industry contributes about 14% of the total industrial production of India. Furthermore, its contribution to the gross domestic product of India is around 3% and the numbers are steadily increasing. India Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy. Indian Textile Industry Market India Textile Industry is one of the leading textile industries in the world. Though was

predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends uponthe textile manufacturing and export. It also plays a major role in the economy of thecountry. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 15 million new jobs by the year 2015 India is a traditional textile -producing country with textiles in general, and cotton in particular, being major industries for the country. India is among the worlds top producers of yarns and fabrics, and the export quality of its products is ever increasing. Textile Industry is one of the largest and oldest industries in India. Textile Industry in India is a self-reliant and independent industry and has great diversification and versatility. The textile industry can be broadly classified into two categories, the organized mill sector and the unorganized decentralized sector. The organized sector of the textile industry represents the mills. It could be a spinning mill or a composite mill. Composite mill is one where the spinning, weaving and processing facilities are carried out under one roof. The decentralized sector is engaged mainly in the weaving activity, which makes it heavily dependent on the organized

sector for their yarn requirements. This decentralized sector is comprised of the three major segments viz., power loom, handloom and hosiery. In addition to the above, there are readymade garments, khadi as well as carpet manufacturing units in the decentralized sector. The Indian Textile Industry has an overwhelming presence in the economic life of the country.It is the second largest textile industry in the world after China. Apart from providing one of the basic necessities of life i.e. cloth, the textile industry contributes about 14% to the country's industrial output and about 17% to export earnings. After agriculture this industry provides employment to maximum number of people in India employing 35 million people. Besides, another 50 million people are engaged in allied activities. India is the largest producer of Jute, the 2nd largest producer of Silk, the 3rd largest producer of Cotton and Cellulosic Fibers/Yarn and 5th largest producer of Synthetic Fibers/Yarn. The main objective of the textile policy 2011 is to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country, to increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and to compete with confidence for an increasing share of the global market. India's textile industry is considered a pioneer in the industry, as the industrialization of India in other areas is managed by funds generated by the textile machinery industry. However, since the beginning of liberalization in 1992 to 1970, the industry tends to protect domestic producers of cotton with a clear objective continuous erosion of its prosperity. Prospect Considering the continual capital investments in the textile industry, the Govt. of India may extend the Technology Upgradation Fund Scheme (TUFS) by the end of the 11th Five Year Plan (till 2011-2012), in order to support the industry. Indian textile industry is massively investing to meet the targeted output of $85bn by the end of 2010, aiming exports of $50bn.

There is huge development foreseen in Indian textile exports from the $17bn attained in 2005-06 to $50bn by 2009-10. The estimation for the exports in the current financial year is about $19bn. There is substantial potential in Indian exports of technical textiles and home textiles, as most European companies want to set up facilities near-by the emerging markets, such as China and India. The global demand for apparel and woven textiles is likely to grow by 25 percent by year 2010 to over 35mn tons, and Asia will be responsible for 85 percent output of this growth. The woven products output will also rise in Central and Southern American countries, however, at a reasonable speed. On the other hand, in major developed countries, the output of woven products will remain stable. Weaving process is conducted to make fabrics for a broad range of clothing assortment, including shirts, jeans, sportswear, skirts, dresses, protective clothing etc., and also used in non-apparel uses like technical, automotive, medical etc.

It is been forecasted that the woven textile and apparel markets will sustain their growth from current till 2010. The imports of apparel and textiles will rise from developed economies like the USA and the western countries of Europe and Japan, along with some newly emerged economies, such as South Korea and Taiwan. Certainly, import growth has been witnessed vertical rise in the previous year. Apparel is the most preferred and important of all the other applications. Woven fabrics are widely used in apparel assortments, including innerwear, outerwear, nightwear and underwear, as well as in specialized apparels like protective clothing and sportswear. Home textile also contributes considerably in woven fabric in products assortments like curtains, furnishing fabrics, carpets, table cloths etc. Special kind of woven fabrics are utilized in medical as well as industrial applications. The medical applications include adhesives, dressing bandages, plasters etc. The Indian Industry foresees huge demand for industrial woven products for medical and automotive applications. Demand for woven fabrics is anticipated to be rise vertically in the sector of home textiles. Non woven sector has great future in terms of global demand, thus major facilities of cotton yarn are currently concentrating just on home textiles. It is mandatory, that the peak management of the cotton yarn manufacturers analyze the future prospect and growing graph of demand for non woven products. Anticipating massive growth in medical and automobile sectors, these sectors assures substantial demand for non woven facilities in India. Albeit, home textiles also will lure higher demand, there are specific demands for home textile facilities also.

The 7th Five Year Plan has huge consideration on agricultural growth that also includes cotton textile industry, resulting a prosperous future forecast for the textile industry in India. Indian cotton yarn manufacturers should rush forward for joint ventures and integrated plans for establishing processing and weaving facilities in home textiles and technical textiles in order to meet export target of $50bn, and a total textile production of $85bn by 2009-2010. Expectations are high, prospects are bright, but capitalising on the new emerging opportunities will be a challenge for textile companies. Some prerequisites to be included in the globally competing textile industry are: Imbibing global best practices Adopting rapidly changing technologies and efficient processes Innovation Networking and better supply chain management Ability to link up to global value chains. The Indian textiles industry has established its supremacy in cotton based products, especially in the readymade garments and home furnishings segment. These two segments will be the key drivers of growth for Indian textiles. Readymade garment exports were worth US$ 8 bn in FY06 and will cross US$ 16 bn by the end of 2010, assuming a conservative growth of 15% per annum. According to estimates, investments in textiles are expected to touch US$ 31 bn by 2010. The readymade garment segment will be the principal driver of growth even in the domestic industry. The changing preferences of Indian consumers -- from buying cloth to readymade garments -- have prompted several companies to move up the value chain into the finished products segment.

Strategic Initiatives Business integration -- especially forward integration -- by the larger textile companies has been prominent among Indian companies. Several companies that are engaged in fabric manufacturing are now keen to enter the readymade garments space. A recent entrant is Siyaram, which launched its readymade garments range in Nov 06, following suit with other majors like Century Textiles and Raymond. Most of the large textile companies have opted for an inorganic growth strategy to scale up operations. Acquisition is the most logical step towards integrating operations and building the value chain. Domestic acquisitions are on the rise, while acquiring foreign assets is yet to gain traction. Some recent domestic acquisitions that have been executed in 2006 include KSL & Industries acquisition of Deccan Cooperative, and Ambattur Clothing taking over Celebrity Fashions. Another growing phenomenon observed among Indian textile companies is the setting up of manufacturing facilities in strategic regions outside India, where they can avail of duty concessions and reduce export lead-time. Zodiac and Ambattur Clothing have and US markets. Raymond has set up a unit in Bangladesh to avail of the zero duty access to the EU. This trend is seen primarily among the large domestic players, who are trying to achieve sizable scales in order to win orders from the large retailers in the US and EU. Global retailers prefer large-sized companies that can scale up capacities consistently, keep up with delivery schedules and meet their growing demand. They have clear preferences for companies with integrated design, process and manufacturing facilities. An interesting commonality in countries with successful garment exports is that they have a much lower level of sub-contracting than India. A study during the 1990s found that apparel firms Future Outlook XXXIII in India subcontracted 74% of their output, as compared to only 11% in Hong Kong, 18% in China, 20% in Thailand, 28% in South Korea and 36% in Taiwan. Consequently, these countries have a

wider base of exports and have done very well in the market for large volumes of uniform products. Foreign Acquisitions by Indian Textile Companies The exports market will remain favourable for India till 2008, when quota restrictions on China end. Post 2008, competition will become tougher. This will be the phase in which Indian textile companies will come under tremendous pricing pressures and tighter product delivery schedules. Nevertheless, the value-added segments of readymade garments, home furnishings and made-ups will continue to grow. Implications for SMEs The new business dynamics have varying undertones across the value chain. The segment that is likely to be hit is weaving. The SMEs in the Powerloom and handloom sector will face significant churn in the future. Spinning mills that account for 95% of the yarn and fibre production, will move up the value chain into weaving. This will erode the viability of the hitherto protected Powerloom and handloom operators numbering over 400,000, who have remained insulated from competitive forces so far. A possible remedy could be for these weavers to align with bigger players or integrate operations that would ensure off-take of their products. The fragmented industry structure has in the past been beneficial in generating employment, but will be difficult to sustain in a globally competitive environment. For fabric manufacturers in the unorganised segment, this will mean inefficient units losing out eventually, while the more efficient and dynamic ones aligning with manufacturers or buyers. For readymade garment SMEs, rising demand and preference for ready-to-wear outfits in the domestic market will sustain a large

number of units in this sector. This will be the most thriving segment in the industry and SMEs will play a key role. Indias key assets include a large and low-cost labour force, sizable supply of fabric, sufficiency in raw material and spinning capacities. On the basis of these strengths, India will become a major outsourcing hub for foreign manufacturers and retailers, with composite mills and large integrated firms being their preferred partners. It will thus be essential for SMEs to align with these firms, which can ensure a market for their products and new orders Weaknesses of the Indian textile industry include fragmentation of the industry, lengthy delivery times, delays in customs clearance and high transportation and input costs. To tackle these factors, the Government will have to play a key role. Infrastructure development, reforms in labour laws and significant policy support will be essential. Textile Sectors in India: The Man-Made Fiber / Yarn and Powerloom Sector: This part of industry includes fiber and filament yarn manufacturing units. The Power looms sector is decentralized and plays a vital role in Indian Textiles Industry. It produces large variety of cloths to fulfill different needs of the market. It is the largest manufacturer of fabric and produces a wide variety of cloth. The sector contributes around 62% of the total cloth production in the country and provides ample employment opportunities to 4.86 million people. The Cotton Sector : Cotton is one of the major sources of employment and contributes in export in promising manner. This sector provides huge employment opportunities to around 50 million people related activities like Cultivation, Trade, and Processing. Indias Cotton sector is second largest producer of cotton products in the world.

The Handloom Sector : The handloom sector plays a very important role in the countrys economy. It is the second largest sector in terms of employment, next only to agriculture. This sector accounts for about 13% of the total cloth produced in the country (excluding, wool, silk and Khadi). The Woolen Sector : The Woolen Textile sector is an Organized and Decentralized Sector. The major part of the industry is rural based. India is the 7th largest producer of wool, and has 1.8% share in total world production. The share of apparel grade is 5%, carpet grade is 5%, and coarse grade is 10% of the total production of raw wool. The Industry is highly dependent on import of raw wool material, due to inadequate production. The Jute Sector : Jute Sector plays very important role in Indian Textile Industry. Jute is called Golden fiber and after cotton it is the cheapest fiber available. Indian Jute Industry is the largest producer of raw jute and jute products in the world. India is the second largest exporter of jute goods in world.

The Sericulture and Silk Sector: The Silk industry has a unique position in India, and plays important role in Textile Industry and Export. India is the 2nd largest producer of silk in world and contributes 18% of the total world raw silk production. In India Silk is available with varieties such as, Mulberry, Eri, Tasar, and Muga. Sericulture plays vital role in cottage industry in the country. It is the most labor-intensive sector that combines both Agriculture and Industry. The Handicraft Sector: The Indian handicrafts industry is highly labor intensive, cottage based and decentralized industry. It plays a significant & important role in the countrys economy. It provides employment to a vast segment of craft persons in rural & semi urban areas and generates substantial foreign exchange for the country, while preserving its cultural heritage. Structure of Indias Cotton Textile Industry Unlike other major textile-producing countries, Indias textile industry is comprised mostly of small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises. This unique industry structure is primarily a legacy of government policies that have promoted labor intensive, small-scale operations and discriminated against larger scale firms: Cotton farming and harvesting: Cotton is grown in tropical as well as sub tropical area in India. Mostly the cotton grown in India is from dry lands and crops mostly depend on the irrigation systems available and not only on the rain water. Ginning: Ginning is the process where cotton fiber is separated from the cotton seed.

The first step in the ginning process is when the cotton is vacuumed into tubes that carry it to a dryer to reduce moisture and improve the fiber quality. Then it runs through cleaning equipment to remove leaf trash, sticks and other foreign matter. Ginning is accomplished by one of two methods. Cotton varieties with shorter staple or fiber length are ginned with saw gins. This process involves the use of circular saws that grip the fibers and pull them through narrow slots. The seeds are too large to pass through these openings, resulting in the fibers being pulled away from the seed. Long fiber cottons must be ginned in a roller gin because saw gins can damage their delicate fibers.

Oil mill: in the operation the oil is extracted from the cotton seeds that are coming from the ginning process. The cotton seeds coming from the ginning unit are then passed through the pressing unit and crude cotton oil is produced. The pressed cotton seed oil cake is supplied as the cattle feed. The crude is further modified as the biodiesel which could be used as the one of the energy source. The refined cotton oil is also used as the edible oil but it is proved to be unfit for the human health Spinning: Spinning is the process of converting cotton or manmade fiber into yarn to be used for weaving and knitting. Largely due to deregulation beginning in the mid-

1980s, spinning is the most consolidated and technically efficient sector in Indias textile industry. Average plant size remains small, however, and technology outdated, relative to other major producers. In 2002/03, Indias spinning sector consisted of about 1,146 small-scale independent firms and 1,599 larger scale independent units. Weaving and Knitting: Weaving and knitting converts cotton, manmade, or blended yarn into woven or knitted fabrics. Indias weaving and knitting sector remains highly fragmented, small scale, and labor-intensive. This sector consists of about 3.9 million handlooms, 380,000 Powerloom enterprises that operate about 1.7 million looms, and just 137,000 looms in the various composite mills. Power looms are small firms, with an average loom capacity of four to five owned by independent entrepreneurs or weavers. Modern shuttle less looms account for less than 1 percent of loom capacity. Fabric Finishing: Fabric finishing (also referred to as processing), which includes dyeing, printing, and other cloth preparation prior to the manufacture of clothing, is also dominated by a large number of independent, small scale enterprises. Overall, about 2,300 processors are operating in India, including about 2,100 independent units and 200 units that are integrated with spinning, weaving, or knitting units.

 Clothing: Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers, manufacturer exporters, and fabricators (subcontractors). Composite Mills: Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing are common in other major textileproducing countries. In India, however, these types of mills now account for about only 3 percent of output in the textile sector. About 276 composite mills are now operating in India, most owned by the public sector and many deemed financially sick. India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades: Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it succeeded in producing 290 lakhs bales of cotton comparing to 315 lakhs bales last year, yet managed to retain its position as world's second highest cotton producer. Economic issues Prices of Cotton The Minimum Support Prices of Kapas (Seed cotton) for fair average quality announced for the cotton season 2005- 2006 (Oct Sept), was fixed at last years level (2004-05) i.e. Rs.1760/- per quintal for medium staple variety (F-414/J-34/H- 777). The support price for H-4 (Long staple variety) has been fixed at Rs.1980/ - per quintal, an increase of Rs.20/- per quintal over support

price of 2004-05. The MSP fixed for F-414/H-777/J-34 variety of kapas will be applicable only to Rajasthan. The price of this variety, grown in Haryana and Punjab has been fixed keeping in view the respective quality differential, vis--vis Rajasthan, obtaining in these States. The Cotton Corporation of India Ltd. (CCI) undertook massive MSP operations throughout 2004-05 in all the cotton growing states, and procured kapas equivalent to lint cotton of 27.52 lakhs bales. In 200405, due to favourable seasonal conditions, there was a sharp rise in productivity, which peaked to a record 463 Kg. Lint/hectare, as compared to 399 kg. / lint per hectare during 2003-04, the cultivated area increased to 89.20 lakhs hectares in 2004-05, as compared to 76.30 lakhs hectares in 2003-04, and the production touched 243 lakh bales in 2004-05, as compared to 179.00 lakh bales in 2003-04.

Present Scenario Textile Industry is offering one of the most basic requirements of community and it possess importance; preserve continued growth for developing quality of life. From the manufacturing of raw materials to the delivery of end products, it has gain its kind of position, as a self-dependent sector and with considerable valueaddition at every stage of dealing; it is a key input to the countrys economy Today the textiles and clothing industry engages an important position in Indias economy. Being the major foreign exchange earner having about 35% in its torso, contributing to about 30 % of Indias exports and 14% of industrial productions, expecting above 6% GDP in 2005, and it considered as the second largest vital sector of employment initiator after agriculture sector. Under the World Trade Organization (WTO) Agreement on Textiles and Clothing, the textile quota scheme of quantitative import limitations under the multi-fiber arrangement

(MFA) came to an end on 1st January, 2005, hence developing countries like India will flourish in the new competitive atmosphere and as a result, the Indian textile industry will have a stronger place in both their export and domestic markets. All along with its usual yarn and fabrics, at present India is exporting more than 100 garment product range. Many worlds leading brands like Tommy Hilfiger, Gap, Liz Claibome, Polo etc are sourcing products from India. With huge investments, persistence innovations, latest product mix and planned marketing, today, India has come out as a flourishing outsourcing centre for textiles and apparel industry to meet the global requirement of the manufacturing fibers and yarns products. In a view of the rising rapport with major global brands, dismantling of quota system from 2005 era would hit upon India as a main global outsourcing hub. Competitive advantage & possible growth in Synthetic Textiles Sector Indias synthetic textile sector is relatively modern and has a high growth potential which will help India to coming out as a major outsourcing hub. With a compounded annual growth rate of more than 22% the exports of MMF textiles have stretched out to a level of US $1.62 billion in 2002- 03 starting from small exports in 1954. The export growth in 2002-03 matches up to the preceding year was in the harmony of 30 percent, and the MMF textile sector is the only sector where the performance has exceeds by the target fixed for this year by US $ 115 million. Indian synthetic textiles are more and more accomplishing new markets along with keeping the market share in the existing markets. At present Indian synthetic textile exports are targeting more than 175 countries worldwide, where Middle East accounted for over 32 percent of our exports and the share of the extremely quality conscious in European Union, approximately 23 percent. Over the years, the Indian MMF textile sector has built-up an export base; and the share of MMF textile exports in the total Indian textile export has also been raised, the share moved up from 10.38% in 2000-

01 to 11.46% in 2001-02 and more to about 14% in 2002-03. At present Indian exports of synthetic textiles to USA are rising at more than 90% yearly. It has also been observed that export growth will be striking for major MMF textile items after dismantling of quota system from 2005 Furthermore, Indonesia, Koreas export of synthetic textiles are turning down compared to previous year. Manufacturing capacity of Korea has declined by more than 30% in the polyester filament sector in 2002 and in 2003 and it is expected to turn down further more, which will end with a turn down in their exports of polyester filament fabrics. Due to anti-dumping duty on the polyester filament fabrics obtained from Taiwan and Korea, countries like Brazil, gaining of more opportunity for India will exists as a larger synthetic fabrics exporter. In the world, synthetic textile trades share of India is also seeing increasing. The export share of Indian synthetic textiles in worldwide increased from 0.11% in 1971 to 1.12% in 1991 and more to about 3% in 2002. This suggests the rising performance of Indian synthetic textile items in the worldwide market. Still there is an opportunity to explore new market segments like Latin America and Africa all along with maintaining the share in the established markets like European Union and USA. At this stage an annual growth expected to 15% for synthetic textiles and exports are expected to touch US$ 2.5 billion in 2005-05 and US$ 4.3 billion in 2009-10. SWOT analysis of the textile industry Employment Generation The textile sector itself has the potential to create 1.2 crore employment opportunity over the next five years. The government would continue to encourage growth within the textiles industry as it holds huge potential for employment and exports. Textile Sector Contribution:

According to the Annual Report 2009-10 of the Ministry of Textiles, the Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the country's gross domestic product (GDP) and 17 per cent to the countrys export earnings. It provides direct employment to over 35 million people and is the second largest provider of employment after agriculture. According to the Ministry of Textiles, the cumulative production of cloth during April09-March10 increased by 8.3 per cent as compared to the corresponding period of the previous year. Total textile exports increased to US$ 18.6 billion during April09January10, from US$ 17.7 billion during the corresponding period of the previous year, registering an increase of 4.95 per cent in rupee terms. Further, the share of textile exports in total exports has increased to 12.36 per cent during April09-January10, according to the Ministry of Textiles. As per the Index of Industrial Production (IIP) data released by the Central Statistical Organization (CSO), cotton textiles have registered a growth of 5.5 per cent during April-March 2009-10, wool, silk and man-made fibre textiles have registered a growth of 8.2 per cent and textile products including wearing apparel have registered a growth of 8.5 per cent. Technical Textile Segment: According to the Ministry of Textiles, technical textiles are an important part of the textile industry. The Working Group for the Eleventh Five Year Plan has estimated the market size of technical textiles to increase from US$ 5.29 billion in 2006-07 to US$10.6 billion in 2011-12, without any regulatory framework and to US$ 15.16 billion with regulatory framework. The Scheme for Growth and Development of Technical Textiles aims to promote indigenous manufacture of technical textile to leverage global opportunities and cater to the domestic demand. Current Status The textile industry holds significant status in the India. Textile industry provides one of the most fundamental necessities of the

people. It is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing. Today textile sector accounts for nearly 14% of the total industrial output. Indian fabric is in demand with its ethnic, earthly colored and many textures. The textile sector accounts about 30% in the total export. This conveys that it holds potential if one is ready to innovate. The textile industry is the largest industry in terms of employment economy, expected to generate 12 million new jobs by 2010. It generates massive potential for employment in the sectors from agricultural to industrial. Employment opportunities are created when cotton is cultivated. It does not need any exclusive Government support even at present to go further. Only thing needed is to give some directions to organize people to get enough share of the profit to spearhead development. Segments Textile industry is constituted of the following segments Readymade Garments Cotton Textiles including Handlooms (Millmade / Powerloom/ Handloom) Man-made Textiles Silk Textiles Woollen Textiles Handicrafts including Carpets Coir Jute The cottage industry with handlooms, with the cheapest of threads, produces average dress material, which costs only about 200 INR featuring fine floral and other patterns. It is not necessary to add any design to it. The women of the house spin the thread, and weave a piece in about a week. It is an established fact that small and irregular apparel production can be profitable by

providing affordable casual wear and leisure garments varieties. Now, one may ask, where from the economy and the large profit comes in if the lowest end of the chain does not get paid with minimum per day labour charge. It is an irony of course. What people at the upper stratum of the chain do is, to apply this fabric into a design with some imagination and earn in millions. The straight 6 yards simple saree, drape in with a blouse with embroideries and bead work, then it becomes a designers ensemble. For an average person, it can be a slant cut while giving it a shape, which can double the profit. Maybe, the 30 % credit that the industry is taking for its contribution to Indian economy as good as 60 % this way. Though it is an industry, it has to innovate to prosper. It has all the ingredients to go ahead. Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The name of these countries with their background can give thousands of insights to a thinking mind. The slant cut that will be producing a readymade garment will sell at a price of 600 Indian rupees, making the value addition to be profitable by 300 %. Currently, because of the lifting up of the import restrictions of the multi-fibre arrangement (MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing, the market has become competitive; on closer look however, it sounds an opportunity because better material will be possible with the traditional inputs so far available with the Indian market. At present, the textile industry is undergoing a substantial reorientation towards other then clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers. The application that comes under technical textiles are filtration, bed sheets and abrasive materials, healthcare upholstery and furniture,

blood-absorbing materials and thermal protection, adhesive tape, seatbelts, and other specialized application and products. Strengths India enjoys benefit of having plentiful resources of raw materials. It is one of the largest producers of cotton yarn around the globe, and also there are good resources of fibres like polyester, silk, viscose etc. There is wide range of cotton fibre available, and has a rapidly developing synthetic fibre industry. India has great competitiveness in spinning sector and has presence in almost all processes of the value chain. Availability of highly trained manpower in both, management and technical. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates. The installed capacity of spindles in India contributes for 24% share of the world, and it is one of the biggest exporters of yarns in the global market. Having modern unctions and favourable fiscal policies, it accounts about 25% of the world trade in cotton yarn. The apparel industry is largest foreign exchange earning sector, contributing 12% of the country's total exports. The garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.

Weakness Massive Fragmentation: A major loop-hole in Indian textile industry is its huge fragmentation in industry structure, which is led by small scale companies. Despite the government policies, which made this deformation, have been gradually removed now, but their impact will be seen for some time more. Since most of the companies are small in size, the examples of industry leadership are very few, which can be inspirational model for the rest of the industry. The industry veterans portrays the present productivity of factories at half to as low as one-third of levels, which might be attained. In many cases, smaller companies do not have the fiscal resources to enhance technology or invest in the high-end engineering of processes. The skilled labor is cheap in absolute terms; however, most of this benefit is lost by small companies The uneven supply base also leads barriers in attaining integration between the links in supply chain. This issue creates uncontrollable, unreliable and inconsistent performance. Political and Government Diversity: The reservation of production for very small companies that was imposed with an intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. However, most of the sectors now have been de-reserved, and major entrepreneurs and corporate are puttingin huge amount of money in establishing big facilities or in expansion of their existing plants. Secondly, the foreign investment was kept out of textile and apparel production. Now, the Government has gradually eliminated these restrictions, by bringing down import duties on capital equipment, offering foreign investors to set up manufacturing facilities in India. In recent years, India has provided a global manufacturing platform to other multi-national companies that manufactures other than textile products; it can certainly provide a base for textiles and apparel companies. Despite some motivating step taken by the government, other problems still sustains like various taxes and excise imbalances due to diversification into 35 states and Union

Territories. However, an outline of VAT is being implemented in place of all other tax diversifications, which will clear these imbalances once it is imposed fully. Labour Laws: In India, labour laws are still found to be relatively unfavorable to the trades, with companies having not more than ideal model to follow a 'hire and fire' policy. Even the companies have often broken their business down into small units to avoid any trouble created by labour unionization. In past few years, there has been movement gradually towards reforming labour laws, and it is anticipated that this movement will uphold the environment more favourable. Distant Geographic Location: There are some high-level disadvantages for India due to its geographic location. For the foreign companies, it has a global logistics disadvantage due the shipping cost is higher and also takes much more time comparing to some other manufacturing countries like Mexico, Turkey, China etc. The inbound freight traffic has been also low, which affects cost of shipping - though, movement of containers are not at reasonable costs. Lack of trade memberships: India is serious lacking in trade pact memberships, which leads to restricted access to the other major markets. This issue made others to impose quota and duty, which put scissors on the sourcing quantities from India. Opportunities It is anticipated that India's textile industry is likely to do much better. Since the consumption of domestic fibre is low, the growth in domestic consumption in tandem is anticipated with GDP of 6 to 8 % and this would support the growth of the local textile market at about 6 to 7 % a year. India can also grab opportunities in the export market. The industry has the potential of

attaining $34bn export earnings by the year 2010. The regulatory polices is helping out to enhance infrastructures of apparel parks, Specialized textile parks, EPZs and EOUs. The Government support has ensured fast consumption of clothing as well as of fibre. A single rate will now be prevalent throughout the country. The Indian manufacturers and suppliers are improving design skills, which include different fabrics according to different markets. Indian fashion industry and fashion designers are marking their name at international platform. Indian silk industry that is known for its fine and exclusive brocades, is also adding massive strength to the textile industry. The industry is being modernized via an exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. International brands, such as Levis, Wal-Mart, JC Penny, Gap, Marks & Spencer and other industry giants are sourcing more and more fabrics and garments from India. Alone Wal-Mart had purchased products worth $200mn last year and plans to increase buying up to $3bn in the coming year. The clothing giant from Europe, GAP is also sourcing from India.

Anticipation As a result of various initiatives taken by the government, there has been new investment of Rs.50,000 crore in the textile industry in the last five years. Nine textile majors invested Rs.2,600 crore and plan to invest another Rs.6,400 crore. Further, India's cotton production increased by 57% over the last five years; and 3 million additional spindles and 30,000 shuttle-less looms were installed. Forecast till 2010 for textiles by the government along with the industry and Export Promotion Councils is to attain double the GDP, and the export is likely attain $85bn. The industry is anticipated to generate 12mn new jobs in various sectors. Recent Trends The mood in the Indian textile industry given the phase-out of the quota regime of the Multi-Fibre Arrangement (MFA) is upbeat with new investment flowing in and increased orders for the industry as a result of which capacities are fully booked up to April 2005. As a result of various initiatives taken by the government, there has been new

investment of Rs.500 billion in the textile industry in the last five years. Nine textile majors invested Rs.26 billion and plan to invest another Rs.64 billion. Further, India's cotton production increased by 57% over

Vision Statement for textile industry (2007-2012)

 To build world class, state-of-the-art, manufacturing capacities and achieve a predominant global standing in manufacture and export of textiles and clothing. To ensure the growth of the Indian textile industry at 16 percent per annum in value terms, to US$ 115 billion, by the end of the Eleventh Five Year Plan. To secure a 7 percent share in global textile trade by the end of the Eleventh Five Year Plan. To equip the textile industry to withstand the pressures of import penetration, and maintain dominance of the growing domestic market.

To enable Small & Medium Enterprises (SMEs) to achieve competitiveness to face the global scenario with confidence. To provide a conducive policy environment which will encourage innovation, augment R&D efforts, and enhance productivity through the upgradation of technology, manufacturing processes and the development of human resources. To establish the Indian textiles industry as a producer of internationally competitive value added products Future of Textile Industry in India The textile industry in India is one of the flourishing sectors of Indian economy. It contributes more than 13% to industrial output, 16.63% to export revenues and 4% to the nations GDP. In the year 2010, the industry is estimated to produce 12 million jobs with an investment of US$ 6 billion in the fields of textiles equipments and structure, and garment manufacturing by the end of 2015. Union Ministry of Textiles certified Apparel Export Promotion Council (AEPC) has taken the responsibility to motivate the foreign investors to invest in Indian Textile industry by exhibiting it massive unexplored domestic market. It has also formulated and endorsed the motto of come, invest, produce and sell in India. Under this the ministry has decided to

send it representatives to Germany, Switzerland, France, Italy and US. The objective is to trigger the foreign investment towards instituting textile units in India by offering numerous allowances to global investor like low-priced workforce and intellectual right fortification. The government of India has also taken few initiatives to promote the textile industry by permitting 100% Foreign Direct Investment in the market. Owing to the upright and straight incorporated textiles price chain, the Indian textile industry symbolizes a strong existence in the complete value chain from raw commodities to finished products. The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) has taken all the required steps to meet the target of doubling the synthetic textile exports in India to US$ 6.2 billion by seizing 4% of market share by FY 2011-12. GlobalTextileMarket Overview The global textile market value is estimated to be US$ 4.50 trillion during the year 2008. It is observed that clothing accounted for about 60% of the market, while textile accounted for the balance 40%. The global textile industry grew at an estimated average annual rate of about 2.5% during 2000-2008. The global slowdown has also affected Textile industry adversely. The global fibre demand has decreased by one percent in 2008. It is also observed that the global textile and clothing industry can be broadly divided into Natural Fibre and Manmade Fibre industry. The Natural Fibre industry includes Cotton, Wool, Silk and Jute; while the manmade Fibre Industry includes Polyamides, Polyester, Polyethylene, Viscose and Acrylic. Global Fibre Scenario The global fibre demand in 2003 was 641 Lacs MT. The demand for fibre grew at a CAGR of 5.05% to reach an estimated 807.50 Lacs MT during 2008. It is noted that during the same period, demand for natural fibre grew at a CAGR of 4.65%, while the demand for manmade fibre grew at CAGR of 5.38%. PFY Demand in India

The domestic demand for PFY stood at 1014755 Tons during the year 2003. The demand for PFY grew at CAGR of 4.21% to reach an estimated 1288523 Tons by the years 2008. PFY industry, as we know, had faced difficult market conditions during the years 1999-2002 due to excess capacity over demand which lead to cut throat unhealthy competition causing substantial erosion in profitability of these companies. However, as now new capacities came up during this period, the gap between supply and demand got gradually bridged up and POY manufacturing units/companies are doing reasonably well since beginning of 2002 and are expected to do much better during the next few years in view of the sustained demand growth. As per detailed survey conducted by 'CRISINFAC' the domestic Polyester industry is likely to witness robust demand growth and higher profit margins in the next five years due to the following positive factors favouring Polyester Industry. Price Competitiveness of Polyester: viz-a-viz other substitutes like cotton, silk and woollen yarns. Excise duty reduction to encourage demand: Excise duty on POY has been progressively reduced over the previous few years to 16% and is expected to be reduced further which will further increase the price competitiveness of POY. Increase of PFY in non-appeal segments: In India, fibre is mostly used for textile applications i.e. 93% and only 7% for non-apparel applications like home textiles, automotive an industrial segments as against 59% worldwide. The demand of nonapparel segment is expected to grow @ 20% p.a. as Polyester offers high tenacity an strength which is most suitable for such applications. Lower per capita consumption: The average per capita consumption (PCC) of fabric

in India is much lower than in its neighbouring countries. India has a huge potential market, given that its PCC is as low as 1.4 kg as compared China (5 kgs), Pakistan (3

kgs) and Indonesia (5 kgs). India has the advantage of a large an growing domestic market, and a good GDP growth. Rapid urbanization: higher spend on clothing: In India, out of the total population, about 70% is rural. Behaviour patterns suggest that most of the fabric demand in this segment is need-based. The urban demand, on the other hand, is also driven by fashion trends and favours more sophisticated textiles, and variety in designs and colours. The average urban spend on apparel is higher than rural spend. However, over the years, the clothing pattern in India has shifted. Men's clothing consumption has moved from the traditional cotton based wear to synthetic fabrics. Cotton dhotis are giving way to trousers (mostly made of polyester or polyester blends). Likewise, women are moving from cotton saris to synthetic saris/dresses. Levy of Anti-dumping duty on import of POY to lower threats of import leading to availability of better contribution to domestic manufacturers. Rapid additions in downstream processing facilities leading to incremental demand. Manufacturing of manmade fibres globally is getting shifted mainly to China and India. As China's domestic consumption almost matches its production, India will be able to increase its presence in the International market. Keeping in view the strong fundamentals mentioned above, CRISINFAC has projected the

POY industry grew at a healthy 7.8% Compounded Annual Growth Rate (CAGR). Raising concern over India's share in the US imports of technical textiles and non-woven fabric which is way behind China, industry body Ficci today said domestic industry needs research and development (R&D) support. "India's share in the US imports of special purpose fabric (technical textiles) and non-woven fabrics was merely 2.6 per cent and 1.2 per cent, respectively in 2009 compared to China's share of 15 per cent and 12 per cent," a Ficci study said. India needs to strengthen its capabilities to tap this growing market as technology-intensive products are the future, it said. The study said there is a need to formulate a comprehensive research and development (R&D) policy for the Indian textile industry. The chamber has submitted its recommendations to the Ministry of Textiles in this regard. The study pointed out that only a small portion of revenue of the Indian textile industry is derived by innovative or technology intensive products. "The policy should aim at increasing the country's share of advance technology-based products and high value-added items in global market to seven per cent in next five years from less than two percent currently. The chamber has also recommended setting-up of a National Textiles Research Council with seed money of Rs 30 crore and an annual grant of Rs 10 crore.The council could be the apex body for undertaking and providing direction to research in textiles in the country, the study said. Ficci said that the policy should provide a special focus on eco-friendly textiles that would help in reducing carbon footprint. "Development of eco-friendly and sustainable linkages is key to competitiveness. Also, the competitive edge for Indian textile industry will come from adoption of new and advance materials with functional properties (like anti-microbial fabrics for patients dress) in the textiles sector," it said. Government Initiative for Textile Industry:

According to the Ministry of Textiles, investment under the Technology Upgradation Fund Schemes (TUFS) has been increasing steadily. During the year 200910, 1896 applications have been sanctioned at a project cost of US$ 5.23 billion. The cumulative progress as on December 31, 2009, includes 27,477 applications sanctioned, which has triggered investment of US$ 45.5 billion and amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion has been disbursed so far till the end of April, 2010. Moreover, in May 2010, the Ministry of Textiles informed a parliamentary panel that it proposes to allocate US$ 785.2 million for the modernization of the textile industry. The Scheme for Integrated Textile Park (SITP) was approved in July 2005 to facilitate setting up of textiles parks with world class infrastructure facilities. 40 textiles park projects have been sanctioned under the SITP. According to the Minister of State for Textiles, Panabaaka Lakshmi, under the SITP, a cumulative expenditure of US$ 204.3 million has been incurred against allocation of US$ 220.7 million in the last three years. In the Union Budget 2010-11 presented in February 2010, the Finance Minister made the following announcements to benefit the textile industry: The central plan outlay for the industry has been enhanced to US$ 1.03 billion. Of this US$ 521.4 million is for TUFS, US$ 76 million for SITP, US$ 80.2 million for handlooms, US $ 69.3 million for handicrafts and US$ 98.4 million for sericulture. Allocation for textiles and jute industry is US$ 713.4 million. The total allocation for village and small enterprises sector which include handicrafts and handlooms is US$ 210.3 million. US$ 31.5 million has been provided for development of mega clusters in handlooms, handicrafts and powerloom sectors. Customs duty at 4 per cent for import of readymade garments for retail sales has been

withdrawn. The micro small medium enterprises in textiles sector have been given full CENVAT credit on capital goods in one installment in the year of receipt of such goods and the facility of payment of excise duty in quarterly basis. Investments According to the Minister for Textiles, Mr Dayanidhi Maran, around US$ 5.35 billion of foreign investment is expected to be made in India in the textile sector over the next five years. The textiles industry has attracted foreign direct investment (FDI) worth US$ 817.26 million between April 2000 and March 2010, according to data released by the Department of Industrial Policy and Promotion. S Kumars Nationwide has formed a joint venture (JV) with Donna Karan International to design, produce and distribute the entire range of DKNY menswear apparel across the world except Japan for 10 years. The new venture will invest US$ 25 million for expansion of Donna Karans menswear brand and expects to record sales of about US$ 140 million in the next three years. The Andhra Pradesh government has allocated over 1000 acres of land for the Brandix India Apparel City (BIAC) in the states special economic zone (SEZ), which was inaugurated in May 2010. The apparel city is expected to attract an investment of US$ 1.2 billion (around Rs 5,400 crore). Private equity firms TPG and Bain Capital have picked up stakes in children apparel retailer Lilliput Kidswear for US$ 27 million and US$ 60.7 million respectively. Italian sportswear maker Lotto is planning to invest US$ 10 million over the next five years to capture 7 per cent of Indias branded sports apparel and equipment market.

The brand, which started its stand-alone retail chain in India in 2008, has 31 standalone stores across the country and plans to open 200 more such stores by 2015. World's leading lingerie brand, Germany-based, Triumph International, plans to invest over US$ 217 million in India to open 12 more flagship outlets and 30 additional EPS (Exclusive Partner Stores) during 2010. Government policies relating to textile industries in India The Indian textile industry is one of the largest industries in the world. The Ministry of Textiles in India has formulated numerous policies and schemes for the development of the textile industry in India. Some of them are detailed in the following sections. National Textile Policy The National Textile Policy was formulated keeping in mind the following objectives: Development of the textile sector in India in order to nurture and maintain its position in the global arena as the leading manufacturer and exporter of clothing. Maintenance of a leading position in the domestic market by doing away with import penetration. Injecting competitive spirit by the liberalisation of stringent controls. Encouraging Foreign Direct Investment as well as research and development in this sector. Stressing on the diversification of production and its Upgradation taking into consideration the environmental concerns. Development of a firm multi-fibre base along with the skill of the weavers and the craftsmen. Such goals are set to meet the following targets:

 The size of textile and apparel exports must reach a level of US $50 billion by the year 2010. The Technology Upgradation Fund Scheme should be implemented in a strict manner. The garments industry should be removed from the list of the small scale industry sector. The handloom industry should be boosted and encouraged to enter into foreign ventures so as to compete globally. The National Textile Policy has also formulated rules pertaining to certain specific sectors. Some of the most important items in the agenda happen to be the availability and productivity along with the quality of the raw materials. Special care is also taken to curb the fluctuating price of raw materials. Steps have also been taken to raise silk to the international standard. of the people and promote its sustained growth to improve the quality of life. To acknowledge textile industry as a self-reliant industry, from producing raw materials to delivery of finished products; and its major contribution to the economy of the country. To understand its immense potentiality for creating employment opportunities in significant sectors like agriculture, industry, organized sector, decentralized sector, urban areas and rural areas, specifically for women and deprived.

To recognize the Textile Policy of 1985, this boosted the annual growth rate of cloth production by 7.13%, export of textile by 13.32% and per capita availability of fabrics by 3.6%. To analyze the issues and problems of textile industry and the guidelines provided by the expert committee set up for this specific purpose. To give a different specification to the objectives and thrust areas of textile industry. To produce good quality cloth for fulfilling the demands of the people with reasonable prices. To maintain a competitive global market Thrust areas Government of India is trying to promote textile industry by giving emphasis on several areas of textile, which are as below: Innovative marketing strategies Diversification of product Enhancement of textile oriented technology Quality awareness Intensifying raw materials Growth of productivity Increase in exports

 Financing arrangements Creating employment opportunities Human Resource Development Efforts Government of India has set some targets to intensify and promote textile industry. To materialize these targets, efforts are being made, which are as follows: Textile and apparel exports will reach the US $ 70 billion mark by 2015 All manufacturing segments of textile industry will come under TUFS ( Technology Upgradation Fund Scheme) Increase the quality and productivity of cotton. The target is to increase 50% productivity and maintain the quality to international standards Establish the Technology Mission on jute with an objective to increase cotton productivity of the country Encourage private organization to provide financial support for the textile industry Promote private sectors for establishing a world class textile industry Encourage handloom industry for producing value added items Encourage private sectors to set up a world class textile industry comprising various textile processing units in different parts of India

Regenerate functions of the TRA (Textile Research Associations) to stress on research works. Government policy on cotton and man-made fiber One of the principal targets of the government policy is to enhance the quality and production of cotton and man-made fiber. Ministry of Agriculture, Ministry of Textiles, cotton growing states are primarily responsible for implementing this target. Other thrust areas 1.Information Technology: Information technology plays a significant role behind the development of textile industry in India. IT (Information Technology) can promote to establish a sound commercial network for the textile industry to prosper. 2.Human Resource Development: Effective utilization of human resource can strengthen this textile industry to a large extent. Government of India has adopted some effective policies to properly utilize the manpower of the country in favour of the textile industry. 3.Financing arrangement: Government of India is also trying to encourage talented Indian designers and technologists to work for Indian textile industry and accordingly government is setting up venture capital fund in collaboration with financial establishments. Acts Some of the major acts relating to textile industry include Central Silk Board Act, 1948 The Textiles Committee Act, 1963

 The Handlooms Act, 1985 Cotton Control Order, 1986 The Textile Undertakings Act, 1995 Government of India is earnestly trying to provide all the relevant facilities for the textile industry to utilize its full potential and achieve the target. The textile industry is presently experiencing an average annual growth rate of 9-10% and is expected to grow at a rate of 16% in value, which will eventually reach the target of US $ 115 billion by 2012. The clothing and apparel sector are expected to grow at a rate of 21 %t in value terms