The Employment Generation Machine of India – Textile Industry

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TextileAsk a child what is the basic necessity for a man, and pat comes a reply food, clothing, shelter and water. Since beginning parents have always taught their children to cover their modesty. And if historians are to be believed then even our Great Great Great ancestors also felt the same. The use of leaf, animal skin was the earliest discovery of clothing, soon people started using their hands to sew and weave clothes thus beginning an Industry which at present is the second largest employment generator in India.

Historians point out that Indian textile work was found in the tombs of Egypt. Indian cotton, silk and jute are very popular in the west and so are some of the design works of different states. Indian textile Industry didn’t have a spectacular beginning. It was only after The Economic liberalization in 1991 that there was an improvement. The Indian textile industry is highly classified. It is integrated and interconnected with several operations. The sector is divided into two categories, Organized and Unorganized. The organized category consists of spinning mills. And the other consists of looms and handicraft. The Indian textile industry deals with products such as, bed linens, shirts, trousers, ready-made garments, saris etc.

A market research report states that the Indian textile market has potential to increase up to 8% share in the world trade and reach the target of US$ 80 billion by 2020. This wouldn’t be a difficult task as the industry contributes 4% to GDP and 17% of the country’s total earning and the sector also employees more than 45 million employers in a year. Some of the major players in the industry are Bombay Dyeing, Vardhaman group, reliance industry etc. to name a few. Exporting of products was the major strength of textile industry and the added benefit was the taking away of the quotas of the Multi Fiber Agreement .The government of India has a goal of reaching 10% in the Global textile trade in the coming 2 years. To make it happen, there are several steps taken up by the Government to further strengthen the Indian Textile industry.

In the beginning of 2013 the Indian textile industry hit a rough patch as there the slowdown due to the Eurozone debt crisis. There was a clear decline in USD terms though the rupee depreciation bought some hope for exporters in INR terms. The Indian textile industry has some hope as during the festive seasons the domestic market will see a clear rise in the demand.