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.
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