The textile industry is not just about fabrics and fashion. In fact, textiles are at the very heart of our nation’s core business activities. This industry, which is deeply rooted in the country’s rich history, is the second largest provider of jobs in India, after agriculture. From the beautifully crafted handlooms in local markets to the buzzing machines of big textile mills, this industry brings together a mix of tradition and modernity. This industry is more than just fabricating garments; it’s about sustaining households, preserving age-old traditions, and ensuring India’s prominent position on the global textile stage. Through this article, we will delve into the rich history of Indian textiles, highlight leading enterprises in this industry, and evaluate the current state of the textile sector.
History/Overview
India’s textile story is both rich and enduring. Going back in time, the textile roots of India can be traced to the Indus Valley Civilization, where cotton textiles showcased the early craftsmanship of the era. This expertise in crafting textiles put India on the world map as a prominent textile trade partner, a reputation documented even in ancient Roman records.
During the Middle Ages, the famous silk route further highlighted India’s standing in the textile world. The Mughal era, in particular, was a golden period for textiles. It was a time when the industry saw the creation of detailed designs and the use of luxurious fabrics like muslins and brocades. In the 1600s, India’s muslins were in such high demand globally that they were sometimes called ‘woven wind’, indicating their fine quality.
However, when the British came to India, the textile industry faced tough times. British policies favoured taking raw materials from India and sending back finished goods from Britain. This shift hurt the local textile industry deeply. By the end of the 19th century, India, which was once a major contributor to the world’s industrial production, saw its share drop sharply.
Post-independence, there was a strong focus from the Indian government to rebuild the textile industry. Efforts were made both to support traditional handlooms and to set up modern textile mills. By the 1980s, India started making its mark again in the global textile scene. Data from the 1990s shows that textiles became a significant export, making up about 15% of India’s total exports.
Today, India’s textile industry is a blend of the old and the new. While traditional practices continue, there’s also a strong presence of modern manufacturing techniques and materials. This sector is a big part of India’s economy and offers jobs to millions.
It is expected that by 2030, the Indian textile industry will be worth $250 billion. The textile sector currently contributes 2.3% to India’s GDP and makes up 7% of the country’s industrial output. Globally, India holds a 5% share in the textile and apparel market. In the financial year 2022-23, exports from cotton textiles alone were valued at $11.1 billion, a significant 30% of the total.
Standing at the peak of the textile sector, Vedant Fashions Ltd has a vast retail presence across the nation. With an amazing annual growth rate, they’ve set a record in garment exports in the past year. Their manufacturing divisions excel in producing premium garments that cater to both national and international markets. Their global footprint spans over 50 countries, truly marking their position on the world map.
KPR Mill Ltd, one of the largest vertically integrated apparel companies in India, has seen a consistent increase in their exports, contributing significantly to the country’s textile export figures. Their remarkable eco-friendly production processes have received international recognition, positioning them as industry leaders.
A multifaceted entity, Trident Ltd’s bed linen division recently bagged an award for its innovative designs. With over 13,000 employees, they have one of the largest spinning capacities in India. Their commitment to excellence and innovation has allowed them to carve a niche in markets across over 100 countries.
4. Welspun India Ltd
As one of the world’s leading home textile retailers, Welspun has a distribution network in more than 50 countries. Impressively, 1 in every 5 towels sold in the US is from Welspun. Their commitment to quality has garnered them collaborations with global giants like Walmart, JCPenney, and Target.
5. Vardhman Textiles Ltd
Vardhman Textiles is not just a leader in textiles but also a pioneer. They are credited with launching India’s first branded sewing thread. Their global reach extends to over 75 countries, with a strong distributor and retailer network ensuring their presence in major global markets.
6. Swan Energy Ltd
Swan Energy’s foray into textiles has been marked by strategic acquisitions and expansions. Their textile division has achieved a significant reduction in water consumption through innovative technologies, showcasing their commitment to sustainable manufacturing practices.
A big name in the textile domain, Alok Industries has achieved an impressive feat by becoming one of the top polyester producers in India. Their product range caters to over 90 countries, and their state-of-the-art facilities have set benchmarks in textile manufacturing.
8. PDS Limited
PDS Limited, in its commitment to sustainability, has adopted eco-friendly practices that have led to significant reductions in carbon footprints. Their recent collaborations with international fashion brands have given a significant boost to their global reputation and market presence.
Jindal Worldwide’s consistent performance has made it one of the top denim fabric manufacturers in India. With over 25 years in the industry, their product line caters to leading global brands, proof of their commitment to quality and innovation.
10. Garware Technical Fibres Ltd
Distinctive in its approach, Garware Technical Fibres has earned awards for producing the world’s first UV-stabilised fishing nets. Their innovative products cater to unique sectors like fisheries and agriculture, reflecting their dedication to diversifying and addressing specific industry needs.
Being one of the largest producers of textiles and apparel worldwide, it becomes evident that the country has both historical expertise and modern proficiency in this domain. Accounting for approximately 2.3% of the nation’s Gross Domestic Product (GDP), it signifies its weight in India’s economic contributions. This percentage translates to a substantial 7% of the entire industrial output in terms of value. These figures clearly show the importance and the volume of the industry’s operations within the country.
India has cemented its place as the 4th largest exporter of textiles and apparel across the globe. When assessing the broader picture of the nation’s export portfolio, it becomes evident that textiles, combined with apparel and handicrafts, have had a significant impact. Specifically, they made up a remarkable 11.4% of India’s total export figures in the financial year 2020-21.
A key aspect of India’s textile prominence is its raw material production. India’s capability in cotton and jute production is exceptional, positioning it as a leading producer on the global stage. Furthermore, the silk segment is another feather in India’s cap. The country’s silk production ranks as the 2nd largest producer in the world, highlighting its significance in the luxury fabric segment.
India’s contribution to the hand-woven fabric sector is nothing short of monumental – an impressive 95% of the world’s hand-woven fabric shows India’s unmatched craftsmanship and rich textile traditions.
On the technological and innovative front, the technical textiles segment in India has shown commendable growth. With an estimated valuation of $16 billion, this segment, which covers textiles used across various industries for specific functional purposes, is the 5th largest globally. Acting as a significant employment generator, this sector is the second-largest employer in the country. Directly, it provides livelihoods to 45 million people, but when one includes the allied industries, the number rises to an impressive 100 million.
Future Outlook
India has a strong foundation built on its historical expertise in textiles, and now, with modern technologies coming into play, you can expect the sector to flourish even more.
A key element influencing the future of this sector is the increasing global emphasis on environmental friendliness. In the upcoming years, expect to witness textiles that aren’t just long-lasting, but also manufactured in an eco-friendlier manner. India is set to lead this shift towards sustainable textiles. Thus, your future textile purchases are likely to be not only of superior quality but also environmentally considerate.
With the ongoing migration to urban centres and the rise in disposable incomes, the domestic demand for textiles is set to grow. Besides the significant potential for international sales, a strong domestic market ensures the industry’s stability and continued success. Additionally, the government is actively backing the sector. It is rolling out strategies and initiatives aimed at strengthening the growth of the textile industry. This includes training programmes to enhance the workforce’s skills and incentives to drive innovation within the sector.
Looking ahead at India’s textile sector, there are plenty of reasons to remain positive. It presents an ideal mix of the traditional and the contemporary, the local and the international, and harmonises heritage with innovation.
Advantages of Investing in the Textile Sector
Growing Domestic and International Demand: India’s growing middle class and its increasing income mean the domestic demand for textile products is on a steady rise. Internationally, Indian textiles are renowned for their quality, diversity, and craftsmanship.
Government Backing and Benefits: The government has introduced measures such as the Production-Linked Incentive (PLI) scheme, the Technology Upgradation Fund Scheme (TUFS), and different export-boosting schemes to enhance India’s textile manufacturing and its global standing.
Innovation and Technological Upgrades: Indian textile companies are increasingly investing in technological advancements and innovation. This focus not only improves the efficiency and quality of products but also places these companies at the forefront of new developments like sustainable textiles and smart clothing.
Export Potential and Global Footprint: India is one of the world’s largest producers of textiles and garments, with a significant global footprint. The country’s strong presence in key international markets like the USA, EU, and Middle East provides a strong base for the growth of its textile sector.
Geographical Advantage: India’s location, serving as a bridge to the Middle East and Southeast Asia and its closeness to both established and growing markets, offers a unique advantage in textile dealings. This advantage is strengthened by a vast network of trade agreements and partnerships, offering easier market access and a large number of opportunities for textile exports.
1. How can I start investing in textile stocks in India?
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Starting your investment journey in the textile sector requires a few initial steps. First, you’ll need to open a Demat and trading account with a reputed brokerage. Once activated, you can research the textile companies listed above and others on the stock exchange. By evaluating their financial performance, growth trajectory, and market reputation, you can make informed decisions about buying shares.
2. Is the textile sector more volatile than other industries?
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The textile sector can face volatility due to factors like global demand shifts, economic conditions, and changing government policies.
3. Why is sustainability becoming a focal point in the textile industry?
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Sustainability is crucial as there’s a global shift towards eco-friendly products and practices, which also influences consumer preferences in India.
4. How has the government supported the textile sector in India?
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The Indian government has introduced various schemes, like the Production-Linked Incentive (PLI), to promote growth in the textile industry.
5. Are traditional handlooms still relevant in the modern Indian textile sector?
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Yes, traditional handlooms are a significant part of the textile industry, representing India’s cultural richness and offering unique, high-quality products.
6. How do external factors, like global trade dynamics, impact the Indian textile sector?
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Global trade dynamics, such as tariff wars, trade agreements, and shifts in supply chains, can significantly impact India’s textile exports and imports. For instance, a favourable trade agreement with a country can boost exports, while disruptions in global supply chains can either open up opportunities or present challenges for Indian textile companies.
7. What is the potential for India’s textile exports?
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India has a vast potential in textile exports due to its diverse product range and quality. With global supply chain shifts, India’s export potential is further amplified.
