What Is The Growth Engine Of the Garment Industry In India?

The list of apparel manufacturers in India is quite large, and it is increasing with each passing day. And there are convincing reasons to believe so. It isn’t that companies from other parts of the globe aren’t doing a good job. What it shows is that Indian apparel manufacturers are performing better.

Let’s discuss the factors that support the Indian garment industry

1. Growing Population With Higher Income

Indian textile companies have to work harder to meet the domestic demand that is growing at a rapid pace. Indians are growing richer. Their spending power is increasing, and they want to buy branded clothes. And it is needless to say that Indian textile manufacturers are being encouraged by domestic buyers to produce quality fabrics.

2. Strong Supportive Innovative From Government

The garment industry in India is flourishing with the support of government initiatives in the form of making policies for cotton, jute, silk, wool industries, and man-made fiber. Also, the government makes policies for the decentralization of the power loom sector and finance. The government also encourages textile manufacturers to utilize the latest technology. India has an independent ministry to formulate policies for the textile industry. This ministry empowers textile manufacturers to compete with global players.

Many textile manufacturers control a considerable part of the international market in the US and Europe. Also, the textile industry employs the largest number of people in the country and contributes to the GDP. One more thing about Indian garments manufacturers is that they produce more varieties of colors and fabrics.

Top 5 Garment Exporters In India

1. Raymond Ltd.

Top garment exporter of country Raymond Ltd exports its products to over 55 countries, including the US, Europe, Canada, the Middle East, and Japan. Also, it controls over 60% of the market share in India. It is a leader in the domestic market, where it has achieved a dominant position.

2. Loyal Group

Loyal Group stands at the second position in the list of India’s top textile exporters, but it has more products and services to offer than others. It has three composite mills and a joint venture trading company with Italy. Also, it has been awarded by the government. The government award is a recognition of its export policies.

3. Mandhana Industries Ltd.

The list of top apparel exporters in India is incomplete without including the name of Mandhana Industries Ltd. This company specializes in custom apparel manufacturing, and it uses state-of-the-art infrastructure to produce quality garments. Also, the company is continuously increasing its business interests in yarn dyeing, weaving, and processing.

4. Alok Industries Ltd.

Alok Industries Ltd has made a large customer base in domestic as well as international markets. It provides end-to-end solutions for home textiles, cotton yarn, polyester yarn, apparel fabric, and garments. It is also one of the fastest-growing textile companies in the country. Its large customer base relies on its exports.

5. Arvind Mill

There is hardly anyone who isn’t familiar with the brand names, including Arrow, Flying Machine, and New Port. And these brand names belong to Arvind Mills. Starting in 1931, this brand is now one of the biggest apparel exporters in the country. Over the years, this company has started diversifying its business into other sectors, including chemicals and dyes, engineering, and advanced materials.

What Does Future Hold For Indian Textile Industry?

The textile industry in India works under the Ministry of Textiles run by an independent minister. It is the second biggest industrial sector after agriculture and hence plays a crucial role in the growth and development of the economy. It provides employment and contributes to the GDP of the country. Also, it brings foreign exchange with export.

History

The history of textiles in India can be traced back to the Harrapan age. It was found that the people of the Harrapa civilization were familiar with weaving and spinning cotton. During Mughal Empire, India produced 25% of the world’s industrial output, and it continued to the British time. India received a booming sector of textile from the British Empire. Earlier it was located in specific states but today it is widespread.

For example, take cotton. Earlier the cotton-growing belt was limited only to Rajasthan, Maharashtra, and Gujarat. The localization of the cotton belt was due to the availability of raw materials, labour, transport, market, and climate. In the early twentieth century, the Indian textile industry played a crucial role in the economy of Maharashtra. While spinning was centralized in Maharashtra, it was decentralized in Gujarat and Tamil Nadu.

Post-independence, India started slow but soon accelerated the pace of garment manufacturing. And it all happened due to the liberal policies of the government of India. Starting from setting an independent ministry for the growth and development of the industry to making liberal policies to empower the small-scale enterprises, the government did all. The biggest problem with the sector is competition.

Present

Today the Indian economy is largely dependent on the textile sector in India, which is booming at a fast pace. It brings about 27% of total foreign exchange in the country. Its contribution to industrial production is 14% and its contribution to the GDP is 3%. And around 35 million people are directly employed by the sector. And it is a huge number. It is the second-largest employment generator in the country, and it accommodates both skilled and unskilled labourers.

Future Challenges in Textile Sector

Textile holds a bright future in the country. It is booking at a fast pace, and it has the potential to accommodate the present as well as future demands of the domestic and international markets. Many Indian textile companies export both yarns and finished apparel to the US, Canada, and European markets. And their share in the international market is growing.

Government Policies

It all started with deregulation in 1985 and it continues till today. The present government has ambitious plans to boost the sector so it generates more employment, increases its share of the GDP, and brings more foreign exchange with export. The government is supporting small-scale yarn manufacturers in India so they can compete with the global players.

India’s textile sector is comprised of most small-scale and non-integrated enterprises that do all kinds of jobs including weaving, spinning, and finishing apparel making. And these small-scale enterprises require government support to grow and expand their businesses to international markets. The government is ready to provide support to small-scale enterprises with liberal policies.

Future of Textile Industry in India

The textile industry in India is playing a crucial role in the country’s GDP by providing direct employment to people. It is increasing exports to bring more foreign exchange. Today India is the third-largest producer of cotton in the world.