Overview of the Indian textile industry

The other half of the Indian Textile industry is a highly organized one with immense importance on capital intensive production process. This sector is characterized by sophisticated mills where technologically advanced machineries are utilized for mass production of textile products.

Sub-Sectoral Categorization of Indian Textile Industry

• Textile Industry based on fiber produced through man made means or natural cotton
• Yarn industry utilizing fiber or filament of the man made type
• Textile industry involved in the production of wool, its derivatives and final woolen products
• Production, processing of Jute and the textile industry based on it
• Textile industry involved in the mass production of natural silk along with derivative and final products from silk
• Handloom Industry
• Handicrafts industry which is basically unorganized in nature

Sub-Categorized sectors of the Indian textile Industry

• Textile Industry based on fiber produced through man made means or natural cotton In the whole Indian textile industry, this sector has come as the largest producer of textile products. This industry has also proved its potential in employing the maximum number of people in the entire industry which has been calculated to be around a whooping one million workers. As per the latest records (31.01.2007) of Ministry of Textiles, the total number of mills in this particular sector is 1818 in number. The installed capacity of all these mills accumulates to
• 35.37 million spindles and
• 0.45 million rotors

During the year 2000-2001, the total amount of spun yarn produced was 3160 million kgs. This amount saw an increase of around 400 million kgs within the period of 2000-2001 to 2005-2006.

Spun Yarn industry can again be divided into two sub-sectors:-

• Cotton Yarn producing industry The production of this industry type is heavily dependent on the yearly production of cotton which again depends on the vagaries of nature. Hence it has been observed that the rate of production in this sector shows fluctuating trend.
• Completely non cotton blended yarn producing industry

This industry type is a consistent performer where its rate of production has increased at a consistent rate. It has been observed that between the period 1999 and 2005, capacity utilized in this sector has varied anything between 80% and 93%.

Organized sector in Textile Industry is passing through a stage of stagnation and the main reason behind it is transformation in the structural set-up of the industry. It has been found out that the weaving sector is delinked from the spinning sector which has led to the rise of powerlooms of decentralized nature. Over the years, the production capacity of this organized sector has seen an absolute decrease of 0.54 lakh between March 2000 and January 2007.

Cloth production has also evidenced a declining trend during 2000-2006 with an absolute decrease of ninety four million square meters. The annual growth rate of total cloth production in the textile industry has been calculated to be around 5.24 % between 2000-2001 to 2005-2006. But stratified result of this industry show that during the above mentioned period, the organized sector of this industry has posted fluctuating results whereas the unorganized one has performed positively with an yearly rate of growth amounting to 5.4%.

• Yarn industry utilizing fiber or filament of the man made typeThis sector can be divided into two divisions :-
• Industry type involved in the production of cellulosic fibers or filaments
• Industry type involved in the production of non-cellulosic fibers or filaments

The total production amount of man-made fiber during the period Apr’2006-Aug’2006 has increased by 16 % on a year-on-year basis. During the same period, man-made filament production has also evidenced an increase of the amount 9 %.

• Textile industry involved in the production of wool, its derivatives and final woolen productsThis industry type is characterized by
• its export orientation,
• production base situated in the rural areas
• presence of both organized as well as non-organized sector

India’s contribution to the total production of wool in the world has been 1.8%. The employment generation capacity of the woolen textile industry in India is enormous.Till the end of year 2006, it has employed a total number of twenty seven lakh workers (according to the estimation of Ministry of Textile, India).

The total raw wool production in India can be classified into three major grades :-

• Carpet Grade amounting to 85% of the total raw wool production
• Coarse Grade amounting to 10% of the total raw wool production
• Apparel Grade amounting to 5% of the total raw wool production

But it has been found out that the total demand for raw wool in India is much more than the actual produce of the same. Hence, a large part of the demand needs to be met through import of raw wool.

This sector also helps the Indian economy through foreign exchange earning from export of woolen products. It has been calculated that export earning in the fiscal 2005-2006 was Rs 2098.27 crores.

The total number of production units of woolen products in India is seven hundred and eighteen only which is expected to increase in the near future because of the new government program known as “Integrated Wool Improvement Program”.

Some of the specialty items utilized in the production of wool fiber in India are Pasmina and Angora.

• Production, processing of Jute and the textile industry based on itProduction of Jute and its associated final products occupy a significant part of Eastern India. In the World arena too, the contribution of this Indian industry is very significant. The main part of the revenue earned by the Jute industry is from export. In terms of export of final jute products, India ranks second in the entire world. Another part of its revenue also comes from the government as well as private orders for packaging purposes.

The special characteristics of Jute can be summarized as :-

• Natural Fiber
• Biodegradable product
• The fibers can be renewed after use
• Very much eco-friendly in nature

The total number of mills responsible for the processed jute production amounts to a total of seventy eight in number among which the maximum number of it is concentrated in West Bengal (sixty one in number).

In India, Raw Jute is produced in the following states :-

• West Bengal
• Assam
• Bihar
• Andhra Pradesh
• Meghalaya
• Orissa
• Tripura

The total produced raw jute in India amounts to 90 to 100 lakh bales. This industry is specially supported by the Government so that the conditions of farmers or producers of Jute remain viable even in the lean years. The main form of support comes in the form of Minimum Support Price. This support price was increased by the government from Rs 910 to Rs 1000 between the period 2005-2006 and 2006-2007.

• Textile industry involved in the mass production of natural silk along with derivative and final products from silkIndia’s ranking in the world of silk production is two which is quite commendable in itself. Its contribution to the total production of silk in the world amounts to 18%. Silk is available in the following four varieties in India, namely :-
• Tasar
• Muga
• Eri
• Mulberry

The rearing and breeding of silk worms and consequent production of raw silk from them is known as Sericulture. This industry is one of the most extensive cottage industries in rural India. More than fifty thousand villages practice this mechanism of silk production. The most significant aspect of it is its labor-intensiveness. The different functions involved in Sericulture are:-

• Workers who are involved in the production of silkworm seeds
• Farmers who are a the same time rear the silkworms
• Workers who reel
• The workers involved in the process of twisting the silk
• Workers who weave the silk
• The workers who are involved in spinning of silk waste
• Traders of Silk

Specialty of Silk Industry can be summarized as follows :-

• Investments required in this industry are very less
• The returns associated with the sale of silk products are quite high
• Remuneration of the crop remains sustainable all through the year.
• The approximate number of people employed in this industry (directly or indirectly) goes to six million.

Total amount of silk produced in the year 2004-2005 was sixteen thousand and five hundred metric tonnes which increased to seventeen thousand and three hundred five metric tonnes during 2005-2006. Foreign exchange earned by this industry through export amounted to Rs 2,879.56 crores during 2004-2005 and Rs 3158.16 crore during 2005-2006. The silk export items of India include :-

Yarn made up of natural silk

• Carpets made up of silk
• Fabrics
• Waste of silk

Weaknesses attached with Handloom Industry in India

• Technology used in this industry are backdated in nature
• The system of production is not organized
• The yield rate of such industry is significantly low
• Availability of working capital for this industry is quite low
• The marketing aspect associated with the Handloom industry is almost nil
• Innovation in the field of creation of final product is significantly low and hence the number of total products are limited to a few.
• Handicrafts industry Handicrafts industry is one of the most traditional industries in India. Characteristic features of this industry are :-
• Capital (initial as well as working) required for investment is very low
• Total number of people employed in this industry are significantly high
• Value added by the handicrafts industry is quite high
• A large portion of the produce is meant for the foreign audience That is why this industry is capable of earning foreign exchange for both the artisans and the country.

The total number of people employed in this industry amounts to 63.81 lakhs. Foreign exchange earned by this industry through export route expanded rapidly from Rs 15,616 crores in 2004-2005 to Rs 17277 crores in 2005-2006.