Ê

 

This project is based on the detailed study of Textile Industry of India it comprises of the detail
about the sector its scope, growth and contribution towards the country development. This
project contains the details about the textile history. Technology used in earlier time was way
different then what are we using now. Government has set up various organizations for the
growth and development of textile sector. But it is not enough as it is mainly availed by the
people who are within the reach of modern technology. Government has introduced a lot of
scheme to boost the textile sector of the country. But it is very much affected by the current
recession. Large number of people has lost their job because of a hit by textile industry.


 


‡‘ To know more about the industry its development and growth.

‡‘ To know its contribution to Indian economy.
‡‘ Fields in which it can be more developed.
‡‘ To know its recent development and trends.
‡‘ To study its share in the world exports.
‡‘ To know its operations and functions.



c
½
   

ata collected for this project is mostly from the official websites of ministry of textiles and
certain articles have also been taken from the news paper. ata collected are divided in to two
parts:-

c ‘ u
 
 ‘  
 

c u


These are the data which are fresh and have never been used before and what
better could be then experience. Certain fact which has been mentioned in the conclusion has
been freshly taken from my experience. As I have my own silk business so I have lot of
information regarding that.

  


These are the data which is from one or the other source, which have been
previously used. These data are collected from internet, newspaper and magazines. As these are
the most frequently used data and which are adopted from time to time for various purposes. As
almost all the information related to textile industry was available in the official websites of
ministry of textiles of it has been gathered from there.

¦

 
 
 
 

The key British industry at the beginning of the 18th century was the production of textiles made
with wool from the large sheep-farming areas in the Midlands and across the country (created as
a result of land-clearance and enclosure). Handlooms and spinning wheels were the tools of the
trade of the weavers in their cottages, and this was a labor-intensive activity providing
employment throughout Britain, with major centers being the West Country; Norwich and
environs; and the West Riding of Yorkshire. The export trade in woolen goods accounted for
more than a quarter of British exports during most of the 18th century, doubling between 1701
and 1770. Exports of the cotton industry ± centered in Lancashire ± had grown tenfold during
this time, but still accounted for only a tenth of the value of the woolen trade.

The textile industry grew out of the industrial revolution in the 18th Century as mass production
of clothing became a mainstream industry. Starting with the flying shuttle in 1733 inventions
were made to speed up the manufacturing process. In 1738 Lewis Paul and John Wyatt patented
the Roller Spinning machine and the flyer-and-bobbin system. Lewis Paul invented a carding
machine in 1748, and by 1764 the spinning jenny had also been invented. In 1771, Richard
Arkwright used waterwheels to power looms for the production of cotton cloth, his invention
becoming known as the water frame. In 1784, Edmund Cartwright invented the power loom.
With the spinning and weaving process now mechanized, cotton mills cropped up all over Great
Britain. Textile mills originally got their power from water wheels, and thus had to be situated
along a river. With the invention of the steam engine, in the 1760s to 1800s, mills no longer
needed to be along rivers.

Ñ
u
 
 
 

Many of the cotton mills, like the one in Lowell MA, in the US originally started with the
intention of hiring local farm girls for a few years. The mill job was designed to give them a bit
more money before they went back to the farm life. With the inflow of cheap labor from Ireland
during the potato famine, the setup changed, as the girls became easily replaceable. Cotton mills
were full of the loud clanking of the looms, as well as lint and cotton fiber. When the mills were
first built a worker would work anywhere from one to four looms. As the design for the loom
improved so that it stopped itself whenever a thread broke, and automatically refilled the shuttle,
the number of machines a worker could work increased to up to 50.

Originally, power looms were shuttle-operated but in the early part of the 20th century the faster
and more efficient shuttleless loom came into use. Today, advances in technology have produced
a variety of looms designed to maximize production for specific types of material. The most
common of these are air-jet looms and water-jet looms. Industrial looms can weave at speeds of
six rows per second and faster.

By the later 20th Century, the industry in the developed world had developed a bad reputation,
often involving immigrants in illegal "sweat shops" full of people working on textile
manufacturing and sewing machines being paid less than minimum wages. This trend has
resulted due to attempts to protect existing industries which are being challenged by developing
countries in South East Asia, the Indian subcontinent and more recently, Central America. Whilst
globalization has seen the manufacturing outsourced to overseas labor markets, there has been a
trend for the areas historically associated with the trade to shift focus to the more white collar
associated industries of fashion design, fashion modeling and retail.

Areas historically involved heavily in the "rag trade" include London and Milan in Europe, SoHo
district in New York City and the Flinders Lane and Richmond districts in Melbourne and Surry
Hills in Sydney.

å
New innovations in clothing production, manufacture and design came during the Industrial
Revolution ± these new wheels, looms, and spinning processes changed clothing manufacture
forever.

The µrag trade¶, as it is referred to in the UK and Australia is the manufacture, trade and
distribution of textiles.

There were various stages ± from a historical perspective ± where the textile industry evolved
from being a domestic small-scale industry, to the status of supremacy it currently holds. The
µcottage stage¶ was the first stage in its history where textiles were produced on a domestic basis.

uring this period cloth was made from materials including wool, flax and cotton. The material
depended on the area where the cloth was being produced, and the time they were being made.

In the later half of the medieval period in the northern parts of Europe, cotton came to be
regarded as an imported fiber. uring the later phases of the 16th century cotton was grown in
the warmer climes of America and Asia. When the Romans ruled, wool, leather and linen were
the materials used for making clothing in Europe, while flax was the primary material used in the
northern parts of Europe.

*
uring this era, excess cloth was bought by the merchants who visited various areas to procure
these left-over pieces. A variety of processes and innovations were implemented for the purpose
of making clothing during this time. These processes were dependent on the material being used,
but there were three basic steps commonly employed in making clothing. These steps included
preparing material fibers for the purpose of spinning, knitting and weaving.

uring the Industrial Revolution, new machines such as spinning wheels and handlooms came
into the picture. Making clothing material quickly became an organized industry ± as compared
to the domesticated activity it had been associated with before. A number of new innovations led
to the industrialization of the textile industry in Great Britain.

Clothing manufactured during the Industrial Revolution formed a big part of the exports made by
Great Britain. They accounted for almost 25% of the total exports made at that time, doubling in
the period between 1701 and 1770.

Today, modern techniques, electronics and innovation have led to a competitive, low-priced
textile industry offering almost any type of cloth or design a person could desire. With its low
cost labour base, China has come to dominate the global textile industry.

ü


 


In furtherance of the objectives, the strategic thrust will be on:

‡‘ Technological upgradation.

‡‘ Enhancement of Productivity.

‡‘ Quality Consciousness.

‡‘ Strengthening of the raw material base.

‡‘ Product iversification.

‡‘ Increase in exports and innovative marketing strategies.

‡‘ Financing arrangements.

‡‘ Maximizing employment opportunities.

‡‘ Integrated Human Resource evelopment.

‰

Ê  

Ê 


Indian Textile Industry can essentially be categorized into two segments:-

Organized Textile Industry.

Unorganized Textile Industry.

Unorganized sector is the dominant part in this industry which mainly utilizes the traditional
practices (woven or spun) in cloth production and hence is labor intensive in nature.

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.


è
 

 
!
 Ê  

Ê 


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

uring 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. 

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. 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%.

â
 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. uring 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 products
This industry type is characterized by:-

ñ‘ Its export orientation.

ñ‘ Production base situated in the rural areas.
ñ‘ 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).

c




""#
  Ê  





ñ‘ Carpet Grade amounting to 85% of the total raw wool production.

ñ‘ Coarse Grade amounting to 10% of the total raw wool production.
ñ‘ 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.

cc

#

$
 
!

ñ‘ Natural Fiber.
ñ‘ Biodegradable product.
ñ‘ The fibers can be renewed after use.
ñ‘ 'ery 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).

Production, processing of Jute and the textile industry based on it Production 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.


c¦
 Ê Ê %"$
# 
" 



ñ‘ West Bengal
ñ‘ Assam
ñ‘ Bihar
ñ‘ Andhra Pradesh
ñ‘ Meghalaya
ñ‘ Orissa
ñ‘ 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 silk India'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:-

ñ‘ Tussar
ñ‘ Muga
ñ‘ Eri
ñ‘ 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.

cÑ
 #
&Ê 
 
!"

ñ‘ Investments required in this industry are very less.

ñ‘ The returns associated with the sale of silk products are quite high.
ñ‘ Remuneration of the crop remains sustainable all through the year.
ñ‘ 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 :-

 # 
&

ñ‘ Carpets made up of silk

ñ‘ Fabrics
ñ‘ Waste of silk

Handloom Industry Handloom industry is placed in the second position in terms of provision
of livelihood and comes only after agriculture. This sector's extent of production has increased
by more than 380 million square meters between the period 2004-2005 and 2005-2006.

cå
 



 


ñ‘ Capital (initial as well as working) required for investment is very low.

ñ‘ Total number of people employed in this industry is significantly high.
ñ‘ 'alue added by the handicrafts industry is quite high.
ñ‘ 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.

c*


Ê 
 #



Ê

 

Textile industry plays a significant role in the growth of Indian economy and it is an important
component of global trade. Textile industry accounts for about one third of India's total export
earnings. It is regarded as the second largest industry of India and is the largest foreign export
earner, accounting for 35% of the gross export earnings in trade. uring 1992-93 and 2001-02,
textile exports recorded an increase at a compound annual growth rate of 14.01%. Handloom and
cotton are the two most significant sectors in textile industry. These two sectors together
contribute the major portion of total textile export in India.

Textile industry generally includes manufacturers, wholesalers, suppliers, and exporters of cotton
textiles, handloom, woolen textiles etc. This industry has the potentiality of generating a large
number of employment opportunities. About thirty five million people are already engaged with
this sector.

uring April-March 1998-99, India's total textile exports were US $ 12533.1 million
(RS.52720.78 crores). uring April-ecember 2000, readymade garments accounted for 40% of
the overall exports of textile products in India, which amounted to US$ 3974.8 (Rs.180443.4
million). uring the year 2001-02, total textile exports in India were worth US $ 10715 million.
In 2005-06, textile exports in India were at $ 17 billion.
The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) is an apex body
founded by the Government of India to boost exports of Indian synthetic and rayon textile items.


cü

 #


Leading trading partners of India are Malaysia, Australia, Kazakhstan, USA, South Africa,
Romania, Argentina, Egypt, Germany, Finland, and Turkey.

Ê '#

½

Malaysia imports various types of textile products from India to meet the requirements of raw
materials for it's emerging garment industry. Malaysia's total textile imports are estimated to
exceed US$ 1.5 billion annually. Malaysia's major importing products include woven man-made
fiber fabrics, apparel accessories, textile yarn, knitted and crocheted fabrics, and women¶s
apparel.

c‰
Ê '#



USA is regarded as the largest textile and apparel market in the world, which amounts to over
$200 billion annually. In 2006, about 45% of the U.S. market demand was met with imported
products, which accounted for 20% of the overall global textile and apparel imports. In 2003, the
total imports of clothing and textiles by USA was 80% (US $ 71 bn) and 20% (US $ 18 bn),
respectively. Asia contributed the most, specifically India. India basically supplied readymade
garments to USA.

Ê '#




Australia is considered as one of the most open textile markets in the world. Major textile
imports include apparels and made-ups under chapter 62, 61 and 63, specifically polyester-cotton
and polyester-viscose types. Bulk of cotton and hand-made fibers are also imported from
countries like India

cè
Ê  #



 ())*)+,

Germany can be regarded as one of the leading importers of Indian hand made fiber textiles.
Germany is also an important market in EU (European Union), specifically for textile and
clothing, with a total market size of about US $ 34 billion (in 2005).uring 2005-06, the total
German imports of textile products from India amounted to Rs. 4714.59 crores and in the same
year, the total imports value of Synthetic and Rayon textiles from India amounted to Rs. 254.63
crores, showing a growth of 58.43% comparing to the performance of previous year.

Ê  #



 ( #   ,

EU overpowered USA as becoming the largest market for textiles and clothing in the world. Asia
predominates the EU market in both clothing and textiles, with 30% (US $ 30 bn) and 17 % (US
$ 8 bn) share, respectively. India is one of the leading suppliers of textile products to the EU
market and ranked fourth, ahead of other textile exporters like Mexico, Bangladesh and Turkey,
with a market share of 5.2% (US $ 0.45 bn).

câ
the textile exports in India will not surpass $ 20.5 billion mark, witnessing a negative growth in
exports, specifically in segments like garments. Garments accounts for about half of the overall
textile exports by India. Agarwal also expressed his doubts about implementing the projected
investment of Rs. 1,94,000 crore in the 11th Five Year Plan (2007-12). Source from Business
Standard reveals that the Indian government is expected to export around 20 % more raw cotton
than before.

Indian textile exports to USA and China are growing rapidly. B.K. Patodia, chairman of India's
Cotton Textiles Export Promotion Council, expressed that China and India are speedily
becoming the two biggest textile players in the world.

CRISIL (Credit Rating Information Services of India Limited), India's leading Ratings,
Research, Risk and Policy Advisory Company predicts that India's textile export earnings will
increase from US 17 billion (FY 2006) to around US 40 billion by FY(Financial Year) 2011.

¦



 

  
 

In 2003, the overall global trade in textiles and clothing amounted to US $ 385 billion, of which
textiles alone contributed 43%. eveloped countries contribute about one third of the total global
exports of textile and clothing.

  
# 

   



One of the principal targets of the government policy is to enhance the quality and production of
cotton and man-made fiber. Ministry of Agriculture, Ministry of Textiles, cotton growing states
are primarily responsible for implementing this target.

  #


Effective utilization of human resource can strengthen this textile industry to a large extent.
Government of India has adopted some effective policies to properly utilize the manpower of the
country in favor of the textile industry.

¦c
  
u
 



Ê 
 Ê 

Ê

 

The Indian textile industry is one of the largest industries in the world. The Ministry of Textiles
in India has formulated numerous policies and schemes for the development of the textile
industry in India. Some of them are detailed in the following sections.

[
 

u

The National Textile Policy was formulated keeping in mind the following objectives:

‡‘ evelopment of the textile sector in India in order to nurture and maintain its position in
the global arena as the leading manufacturer and exporter of clothing.

‡‘ Maintenance of a leading position in the domestic market by doing away with import
penetration.

‡‘ Injecting competitive spirit by the liberalization of stringent controls.

‡‘ Encouraging Foreign irect Investment as well as research and development in this

sector.

‡‘ Stressing on the diversification of production and its upgradation taking into

consideration the environmental concerns.

¦¦




" 



‡ The size of textile and apparel exports must reach a level of US $50 billion by the year 2010.

‡ The Technology Upgradation Fund Scheme should be implemented in a strict manner.

‡ The garments industry should be removed from the list of the small scale industry sector.

‡ The handloom industry should be boosted and encouraged to enter into foreign ventures so as
to compete globally. The National Textile Policy has also formulated rules pertaining to certain
specific sectors. Some of the most important items in the agenda happen to be the availability
and productivity along with the quality of the raw materials. Special care is also taken to curb the
fluctuating price of raw materials. Steps have also been taken to raise silk to the international
standard.

u Ê Ê 
- [
 

u)))

- [
 $
u))*

-

 #
.
u)))))/

¦Ñ
u


To comprehend the purpose of textile industry that is to provide one the most basic needs of
the people and promote it's sustained growth to improve the quality of life.

To acknowledge textile industry as a self-reliant industry, from producing raw materials to

delivery of finished products; and its major contribution to the economy of the country.

To understand its immense potentiality for creating employment opportunities in significant

sectors like agriculture, industry, organized sector, decentralized sector, urban areas and rural
areas, specifically for women and deprived.

To recognize the Textile Policy of 1985, which boosted the annual growth rate of cloth
production by 7.13%, export of textile by 13.32% and per capita availability of fabrics by 3.6%.

To analyze the issues and problems of textile industry and the guidelines provided by the
expert committee set up for this specific purpose.

To give a different specification to the objectives and thrust areas of textile industry.

To produce good quality cloth for fulfilling the demands of the people with reasonable prices
and

To maintain a competitive global market.

¦å
  ½ 


c
 #
 0 (
0, 


 ½   

 (
½ , 

1  !
u (u, 

/ u" 

* $

 ½ ($
½, 

+ $
½ 
 #
   

2 [
  
$
 
 

3  
Ê



u& 

4 

5&6



 0 (
50, 

¦*

!u"


c  )7 
  & #
 

   #" 
  

0

5  is a thrust area and occupies a special place under the Technology Upgradation Fund
Scheme. TUFS helps the small scale powerloom units by providing an additional option of
availing credit linked 20% capital subsidy upto a cost of Rs. 1.00 crore with the facility to obtain
credit from an enlarged credit network that includes all cooperative banks and other genuine non-
banking financial companies (NBFCs) recognized by the Reserve Bank of India.


 u"  
(u ,
44 Powerloom Service Centres (PSCs) are located in major powerloom concentration areas in
different States and provide a variety of technical services that include training, testing facilities,
technical consultation, design development and diversification etc to powerloom units and
weavers. So far 21 PSCs have been modernized and the rest are being upgraded with modern
looms and related machinery and equipment. Plans are afoot to re-orient these Centres into
Textile Service Centres catering to other segments of the industry as well. Most of these are
under the management of autonomous bodies.

1 ##

 #
  


Similar to the PSCs, the CA Centres also play an important role in developing new computer-
generated textile designs. At present there are 17 such Centres to give support to the powerloom
sector all over the country. Financial assistance in the form of a grant-in-aid of Rs. 6.75 lakh per
CAC per annum is provided by the Ministry.






¦ü
 / #5&

With a view to improve the working environment and enable powerloom workers to obtain
higher productivity, the Central Government has approved a # 5& , to
provide subsidy for construction of worksheds, limited to 25% of the unit cost of construction
subject to a maximum of Rs.80/- per. sq. ft. In order to improve other infrastructure facilities the
scheme envisages a link with the Textile Centre Infrastructure evelopment Scheme (TCIS),
which provides central assistance for improving critical infrastructure in existing or emerging
textile centers.


* #Ê  u"5 

#Ê  u"5 has been introduced in association with
the Life Insurance Corporation of India since July 2003. This Scheme has two components--
$ 8 9 Ê
 Under $ 8 powerloom
workers aged between 18 to 59 years and below the poverty line (BPL) or marginally higher than
the BPL are eligible for an insurance coverage of Rs. 50,000 on accidental death / permanent
disability; Rs. 25,000 on permanent partial disability; or Rs. 20,000 on natural death / partial
disability. The annual premium of Rs. 200 would be shared by the Central Government, the
Beneficiary, and LIC in the ratio of Rs. 60, 40 and 100 respectively. Under the  ,
additional insurance coverage of Rs. 30,000 on natural as well as accidental death is made
available at annual premium of Rs. 180, which would be shared equally by Central Government
and Beneficiary. On paying, a weaver can avail cumulative benefits of both the Schemes.


¦‰



1. Central Silk Board Act, 1948 -

2. The Handlooms (Reservation of Articles for Production) Act, 1985

3. The Jute Companies (Nationalization) Act, 1980.

4. Jute Packaging Materials (COMPULSORY USE) Act, 1987.

5. Jute Manufactures evelopment Act,

6. Jute Manufacturers Cess Act, 1983.

7. The Textile Committee Act, 1963.

8. Textiles Undertakings (Taking over of Management) Act, 1983.

9. The Textiles Undertakings (Nationalization) Act, 1995

10. The British India Corporation Limited (Acquisition of Shares) Act, 1981.

11. Sick Textile Undertakings (Taking over Management) Act, 1972.

12. Sick Textile Undertakings (Nationalization) Rules, 1974.

13. Sick Textile Undertakings (Nationalization) Amendment Act, 1995.

14. Laxmi Rattan & Atherton West Cotton Mills (Taking over of Management) Act, 1976.

15. Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings)

16. The National Institute of Fashion Technology (NIFT) Act.

Government of India is earnestly trying to provide all the relevant facilities for the textile
industry to utilize it's full potential and achieve the target. The textile industry is presently
experiencing an average annual growth rate of 9-10% and is expected to grow at a rate of 16% in
value , which will eventually reach the target of US $ 115 billion by 2012. The clothing and
apparel sector are expected to grow at a rate of 21 %t in value terms.

¦è
  [Ê:
Ê [ 


½ 


½ 
 




90



$

   ( , (,

$


       




¦â



8 Ê 

,  u
%["

,

 

%½



,$
½ 
 #
  %;&


 , 
&8%8 


&8

The Central Silk Board (CSB) was constituted under an Act of Parliament (LXI of 1948) with
the objective of promoting the growth and development of sericulture in the country. The
programmes for development of the sericulture industry are primarily formulated and
implemented by the State Sericulture epartments. However, the CSB supplements the efforts of
the states by providing necessary support for Research, evelopment, Extension and Training
through its country-wide network of units. Besides, the CSB organizes production and supply of
quality silkworm seed, mulberry cuttings etc. and also undertakes directly as well as jointly with
the state sericulture departments, the implementation of various sericulture projects.

Ñ

<Ê 8 Ê 

i) evelopment Council for Textile Industry

ii) Cotton Advisory Board

iii) Jute Advisory Board

iv) Coordination Council for Textile Research Association

v) All India Handloom Board

vi) All India Handicrafts Board

vii) All India Powerloom Board

viii) Advisory Committee under Handlooms (Reservation of Articles for production Act) 1985


[ ½ 8 Ê  

i) Central Wool evelopment Board

ii) National Institute of Fashion Technology

iii) Sardar 'allabhbhai Patel Institute of Textiles Management, Coimbatore.

Ñc
u8Ê 
[ 
;Ê[

,[
 

 #
 
 %[" 

,
8
Ê  #
 
 %; # 

,
  ½
 %; # 


, " #

½
 %; # 

, 

  #
 Ê 
 ½

 

 ,$
 #
 Ê 
 %;&


,8$
 #

 %;&


,[
 $
½ 
 #
 %;&


, 
   #
 #
 

, 
 

Ê 
 #
 %[" 

,[
   #
 #
 
 %& " 

Ѧ



 

The main objective of these institutions is to carry out research and render consultancy services
(quality Management Service - ISO-9001) to industry on various aspects of textile technology
with a view to reducing the cost and improving the quality and durability, reducing pollution,
conserving energy and utilizing waste, adopting new technology and improving the technologies
in the decentralized sectors. A large number of research projects of considerable importance are
already going on in several fields of textiles. These associations are headed by irectors. The
Names and Addresses of Associations are :-

c ‘ 


Ê 

 (
Ê, 
 ‘ 8



 (8
, 
1 ‘ 
Ê 


 (Ê
, 
/ ‘ [
 Ê 


 ([Ê
, 
* ‘ 


9
&½
 (½Ê, 
+ ‘ ½ 


 (½[
, 
2 ‘ Ê  $
Ê 
'
 (Ê$Ê, 
3 ‘ 5
 (5, 


#
u
   

1.‘   #
u
   ( u ,©

2.‘ ## #
u
   ( u ,©
3.‘ 

 

 #
u
   (
u Ê,©
4.‘


  

 #
u
   (
u ,©
5.‘ Ê  & #
u
   (Ê u ,©
6.‘ 5 5  #
u
   (595 u ,©
7.‘ #
 #
u
   ( u ,©
8.‘ #
u
    
( u ,©

ÑÑ
c   #
u
   ( u ,

The council gets grant-in-aid from Government for its export promotion activities like
organization of fairs/ exhibitions/ seminars/ buyer seller meets etc. It is the nodal agency for
promotion of exports of the handloom sector.

 ## #
u
   ( u ,

Objective of the Council is to promote, advance, increase and develop exports of all types of
ready made garments. Woollen knitwear and garments of leather, jute and hemp are excluded
from its purview.

1  

 

 #
u
   (
u Ê,

The Council looks after the export promotion of cotton fabrics, cotton yarn and cotton made-ups.
Its activities include market studies for individual products, circulation of trade enquiries,
participation in exhibitions, fairs and seminars at home and abroad, in order to boost exports.

/ 


  

 #
u
   (
u ,

It is the nodal agency for promotion of exports of Indian synthetic and rayon textiles (yarn,
fabrics and made-ups).The council gets grant-in-aid from Government for its export promotion
activities like organization of fairs/ exhibitions/ seminars/ buyer seller meets etc.

Ñå
* Ê  & #
u
   (Ê u ,

The ISEPC is the nodal agency for promotion of exports of natural silk goods from India and
acts as a registering authority for the information to its members. The council produces and
disseminates information to its members about the market developments in the world, changes in
the trade polices, etc. A catalogue containing sample swatches of the full range of silks from
India is available for potential buyers, importing textiles agents and Indian missions abroad.

+ 5 5  #
u
   (595 u ,

The council's objective is promotion of exports of Wool and Woollen products. The council gets
grant-in-aid from Government for its export promotion activities like organization of fairs/
exhibitions/ seminars/ buyer seller meets etc.

2  #
 #
u
   ( u ,

The council's objective is promotion of exports of carpets. The council gets grant-in-aid from
Government for its export promotion activities like organization of fairs/ exhibitions/ seminars/
buyer seller meets etc.

3  #
u
    
( u ,

The council's objective is promotion of exports of handicrafts products. The council gets grant-
in-aid from Government for its export promotion activities like organization of fairs/ exhibitions/
seminars/ buyer seller meets etc

4 u" #
9 #
u
   (u  Ê,

Powerloom evelopment & Export Promotion Council is a nodal agency for development and
promotion of the exports of Powerloom products.


Ñ*

=Ê 


ñ‘ Jute sector

ñ‘ Sericulture Industry

ñ‘ Wool & Woollen Sector

ñ‘ Man-made Fiber & Filament

Yarn Industry

ñ‘ Exports

Ñü
 5& 

"
 Ê 
 Ê 

ñ‘ Technologies used in this industry are backdated in nature.

ñ‘ The system of production is not organized.
ñ‘ The yield rate of such industry is significantly low.
ñ‘ Availability of working capital for this industry is quite low.
ñ‘ The marketing aspect associated with the Handloom industry is almost nil.
ñ‘ Innovation in the field of creation of final product is significantly low and hence the numbers
of total products are limited to a few.
ñ‘ Handicrafts industry Handicrafts industry is one of the most traditional industries in India.




Government of India is trying to promote textile industry by giving emphasis on several areas of
textile, which are as below:

Innovative marketing strategies.

iversification of product.

Enhancement of textile oriented technology.

Quality awareness.

Intensifying raw materials.

Growth of productivity.

Increase in exports.

Financing arrangements.

Creating employment opportunities.

Human Resource evelopment.

щ
 


Government of India has set some targets to intensify and promote textile industry. To
materialize these targets, efforts are being made, which are as follows:

Textile and apparel exports will reach the US $ 50 billion mark by 2010.

All manufacturing segments of textile industry will come under TUFS (Technology
Upgradation Fund Scheme).

Increase the quality and productivity of cotton. The target is to increase 50% productivity and
maintain the quality to international standards.

Establish the Technology Mission on jute with an objective to increase cotton productivity of
the country.

Encourage private organization to provide financial support for the textile industry.

Promote private sectors for establishing a world class textile industry.

Encourage handloom industry for producing value added items.

Encourage private sectors to set up a world class textile industry comprising various textile
processing units in different parts of India.

Regenerate functions of the TRA (Textile Research Associations) to stress on research works.

Ñè
ʽu 
[


[ 
u



The Endeavour will be to -

‡ Achieve the target of textile and apparel exports from the present level of US $ 11 billion to
US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion.

‡ Implement vigorously, in a time bound manner, the Technology Upgradation Fund Scheme
(TUFS) covering all manufacturing segments of the industry;

‡ Achieve increase in cotton productivity by at least 50% and upgrade its quality to
international standards, through effective implementation of the Technology Mission on
Cotton;

‡ Launch the Technology Mission on Jute to increase productivity and diversify the use of
this environment-friendly fibre;

‡ Assist the private sector to set up specialized financial arrangements to fund the diverse
needs of the textile industry;

‡ Set up a 'enture Capital Fund for tapping knowledge based entrepreneurs of the industry;

‡ Encourage the private sector to set up world class, environment-friendly, integrated textile
complexes and textile processing units in different parts of the country;

‡ e-reserve the Garment industry from the Small Scale Industry sector;

‡ Strengthen and encourage the handloom industry to produce value added items and assist
the industry to forge joint ventures to secure global markets;

Ñâ
 th
‡ Re-design and revamp, during the 10 Five Year Plan, the Schemes and Programmes
initiated in the handloom, sericulture, handicrafts and jute sector to ensure better returns
for those belonging to the disadvantaged categories, and the North East and other
backward regions of the country;

‡ Facilitate the growth and strengthen HR Institutions including NIFT (National Institute of
Fashion Technology)on innovative lines;

‡ Review and revitalise the working of the TRAs (Textile Research Associations) to focus
research on industry needs; and

‡ Transform, rightsize and professionalise all field organisations under the Ministry of
Textiles to enable them to play the role of facilitators of change and growth.

å

Ê[ʽ
" 


Ê 


5
Ê   

 
  


 
   
% #




 



  "" 



 
 
  
 

Current indications are that at least 1.2 million workers in this industry are going to be without
jobs by the end of March. Assuming four others depend on each individual rendered jobless, the
total number adversely impacted in this labour-intensive sector would reach six million.

Two years ago, the Indian textiles industry was supposed to have been on the threshold of rapid
growth. Today it is in urgent need for resuscitation. Even the figure of 1.2 million job losses put
out by the association, the Confederation of Indian Textiles Industry (CITI), could prove to be an
underestimate.

The recession in the West had adversely impacted these economies the most as a result of which
exports from India are projected to fall sharply in the coming months.

Rising prices of raw cotton have become a contentious issue for the industry. The government is
reluctant to reduce the prices paid to cotton farmers as suicides have been widespread in cotton-
growing areas.

With cotton prices rising by 30 percent over the last year, cotton textiles and garments are being
priced out of international markets. A number of textile mills have begun µvoluntary retirement
schemes¶ for workers. Whether India¶s skilled textile industry workers will find jobs outside the
country remains to be seen.

Union commerce and industry minister Kamal Nath estimated that in the financial year that
ended in March 2008, approximately 800,000 garment and textile employees had lost their jobs,
almost half of the two million lost in export-oriented industries.

åc
The Indian currency, the rupee, started weakening against the US dollar from the middle of 2008.
But exports did not pick up because from around this time, markets in the U.S., Western Europe
and Japan began shrinking.

Food comes before underwear. As debt-fuelled consumer spending declined in the rich nations,
the markets for Indian textiles and garments started shrinking.

Exports of textiles and garments from India to the U.S. in the January-August period came down
from 3.9 billion US dollars to 3.8 billion dollars - this was before the Wall Street meltdown in
September. The overall drop in value terms was 1.6 percent, with the drop in exports of garments
a much higher 4.8 percent.

The situation has become worse since then. The total output of the textiles sector came down by
nearly 10 per cent in the month of October. A study conducted in November by the Federation of
Indian Chambers of Commerce and Industry (FICCI) pointed out that investments in the textiles
industry were falling and so was its profitability.

Some of the city¶s major garments making companies, which create 400,000 jobs in the
Ludhiana alone, have suffered more than a 50 percent loss in sales, specifically exports, over the
last year.

"twenty to thirty percent of the jobs in the industry have been lost. But the exports is a big
business, it feeds a lot of other businesses, so it won¶t stop there. Naturally, if the US and Europe
are facing a crisis, it affects us''.

Indian exporters of textiles and garments are facing stiff competition not only from
manufacturers in Bangladesh but also from low-cost goods being produced in China, 'ietnam
and Sri Lanka.

å¦
"The [economic] stimulus package announced by the [Indian] government on ec.7, 2008... has
failed to cheer the industry, since it did not address all the major issues," wrote R.K. almia,
chairman, CITI, on the industry association¶s website.

A recent study conducted by the Economic Times newspaper of eleven major textile
corporations in India found that while the total debt among the companies has quadrupled in the
last six years, their ability to cover debt had not increased since 2003.

A number of speakers at a seminar on the impact of the economic slowdown on small and
medium enterprises that was organized in November by the State Bank of India in Ahmedabad,
capital of the western Indian state of Gujarat, called for easier terms for bank credit and
reduction in taxes on textiles.

åÑ
ata collected for this project is mostly from the official websites of ministry of textiles and
certain articles have also been taken from the news paper. ata collected are divided in to two
parts:-

1 ‘ u
 
/ ‘  
 

c u


These are the data which are fresh and have never been used before and what
better could be then experience. Certain fact which has been mentioned in the conclusion has
been freshly taken from my experience. As I have my own silk business so I have lot of
information regarding that.

  


These are the data which is from one or the other source, which have been
previously used. These data are collected from internet, newspaper and magazines. As these are
the most frequently used data and which are adopted from time to time for various purposes. As
almost all the information related to textile industry was available in the official websites of
ministry of textiles of it has been gathered from there.

åå


u 
Ê [ 05Ê;

(Including non-Mulberry) (in tones)

  ½8 
 Ê ½



2000-01 14432 237 1089 99 15857
2001-02 15842 249 1160 100 17351
2002-03 14617 284 1316 102 16319
2003-04 13970 315 1352 105 15742
2004-05 14620 322 1448 110 16500
2005-06 15445 308 1442 110 17305
2006-07 16525 350 1485 115 18475

å*
ÊÊ
 0 5
 0

Ê 

At present textile sector contributes about 14% to industrial production and
about 15% to the country¶s export earnings.

u
  

The cloth production during 2006-07 was 53,389 mn. sq. mtr. The sectorwise
compound annual growth rate during the last five years works out to 6.20%The
total production of cloth by all sectors i.e. mill, power loom, handloom, hosiery and
khadi, wool and silk is anticipated to be 57,491 million sq. mtrs, during 2007-2008.
uring April-ecember 2007 production of cloth was 41,203 mn. sq. mtr.
(Provisional), compared to 39,860 mn. sq. mtr. during same period of the previous
year.

u #
 

 
 
The satisfactory performance in cloth production has resulted in favorable
per capita domestic availability of cloth in the country. The per capita availability of
cloth during 2006-07 was 40.20 sq.mtrs, compared to 36.10 during the previous year.

åü


#

The textile products continue to hold an important role in the Indian exports. The latest
status of exports of textiles from the country are given in the Table below

Sl No. Item 2004-05 2005-06 2006-07

US $ Million US $ Million US $ Million

(i) Ready made 6561.37 8617.74 8687.86
Garments
(ii) Cotton Textiles 3544.16 4600.78 5480.75
(iii) Manmade 2050.73 2039.57 2359.32
Textiles
(iv) Wool & Wollen 69.79 85.29 83.76
Textiles
(v) Silk 405.02 432.56 431.85
1. Textiles (i-v) 12631.07 15775.93 17043.54
2. Handicrafts 1013.85 1314.53 1258.18
3. Coir & Coir 105.56 133.35 156.26
Manufacturers
4. Jute Goods 276.25 296.26 257.32
Grand Total 14026.72 17520.07 18715.29

The Textile exports recorded a substation growth of 24.9% (in US$ terms) in year 2005-06.
However, there is only nominal increase in the textile export (6.82%) in the year 2006-07.
uring the period April ± October 2007, textile exports were US$ 10672.75 million, recording
an increase of 1.17% as compared to the corresponding period of previous year.

å‰
Ê
Ê
  
ÊÊ 

.[
Ê

(<  ½ , (< ½ >,
( 
 ,
[Ê
½½ Ê
Ê  ))2 ))3 7 7

 ))2)3 ))3)4 ))2)3 ))3)4
)3 )4 <
  <
 

#½

I 0Ê8 

Cotton Raw Incl.

TON 79503 938461 4166.32 11982.87 187.61 100.56 291.34 189.71
Waste

Manmade Staple Fibre N.A. N.A. 1659.11 2395.40 44.38 40.05 58.24 45.43

Silk Waste TON 182 49 26.92 3.58 -86.70 0.65 0.09 -86.60

 8

  [ [ *3* 1* c/13c 3* c/* 2/ c/c + 1/4 +2 c/2 */

II [=08Ê =½ u

Cotton Yarn, Fabrics,

N.A. N.A. 27187.91 32174.53 18.34 656.24 782.26 19.20
Madeups Etc.

Natural Silk Yarn,

N.A. N.A. 2704.57 2263.46 -16.31 65.28 55.03 -15.70
Fabrics, Madeup

Manmade Yarn,
N.A. N.A. 15352.53 22415.56 46.01 370.57 544.99 47.07
Fabrics, Madeups

Wollen Yarn, Fabrics,

N.A. N.A. 592.81 766.90 29.37 14.31 18.65 30.31
Madeups Etc.

 8

  [ [ /*312 3 *2+) /* * 2c cc)+ 14 c/)) 41 + +

åè
III ½

Rmg Cotton Including

N.A. N.A. 49231.11 52949.36 7.55 1188.30 1287.37 8.34
Accessories

Rmg Silk N.A. N.A. 1440.29 2552.97 77.25 34.76 62.07 78.55

Rmg Manmade Fibres N.A. N.A. 6102.34 5843.01 -4.25 147.29 142.06 -3.55

Rmg Wool N.A. N.A. 1827.05 2317.36 26.84 44.10 56.34 27.76

Rmg Of Other Textile

N.A. N.A. 2944.25 5608.32 90.48 71.07 136.36 91.87
Material

 8

  [ [ +c*/* )/ +42c ) c ** c/3* * c+3/ ) c1 12

I' u


Carpet (Excl. Silk)

N.A. N.A. 5160.79 6520.07 26.34 124.57 158.52 27.26
Handmade

Carpet (Excl. Silk)

N.A. N.A. 0.00 0.00 0.00 0.00 0.00 0.00
Millmade

Silk Carpet N.A. N.A. 127.03 48.34 -61.95 3.07 1.18 -61.67

 8

  [ [ *32 3 +*+3 /c /  c2 +1 c*4 2) * c

åâ
< $


Jute Yarn TON 9433 13460 309.37 394.54 27.53 7.47 9.59 28.46

Jute Hessian N.A. N.A. 361.27 725.24 100.75 8.72 17.63 102.21

Floor Covering Of TH.

4534 3033 423.03 400.68 -5.28 10.21 9.74 -4.59
Jute SQM

Other Jute
N.A. N.A. 605.12 756.60 25.03 14.61 18.40 25.95
Manufactures

 8

  [ [ c+43 24 22 )+ 1/ )/ /c )) ** 1+ 1* )

COIR & COIR

N.A. N.A. 903.29 1012.93 12.14 21.80 24.63 12.96
MANUFACTURERS

HANICRAFTS
(EXCL.
N.A. N.A. 3042.74 1557.06 -48.83 73.44 37.86 -48.45
HANMAE
CRFTS)

 8

  [ [ 14/+ )1 *+4 44 1/ 32 4* * + /3 1/ /)

c*+33 2
[

  [ [ c/c+2 3*  42 442 )* 12c 1* 1 32
 3

3
 
 3 

  

3



*

     
 

Textile industry in India is doing extremely well in spite of being hit by global recession India is
doing extremely well in local market up to last year end. But now seen is totally different as
Indian market is totally based on season so at present there is no upcoming festival so local
market is also not as good as expected. But the local market is not completely stop as in India
there is marriages now and then so the demand keeps on fluctuating in the local market. Textile
Industry being an Industry which satisfies the basic needs of a people that is clothing demand is
not meeting the expectation of the seller as this is the time of liquidity crunch for both economy
as well as people so at this point of time people behaves very careful and they only like to invest
in the product which satisfy their initial requirements.

Thing which I recommend for the Textile Industry is that it does a very less advertising
and promotion for its product. Product being manufactured in small towns and villages its not
reaching to all the people who need those products. Marketing of textile products by GOI
(Government of India) is very less. They are not providing adequate information to the people
who want information about the product as a result demand of a products is not increasing.

India being a second largest producer of silk in the world is contributing only 18% to the
world output. India has enough manpower but problem is in technology which is not yet
modernized as a result output is of low quality and the production speed also becomes less.
There is a proverb that ³chase the quality Quantity will chase you´ but India is chasing quantity
that result in low quality product so India should concentrate on quality.

Marketing of Indian Textile products abroad by GOI is very minimum which results in fewer
buyers are aware of Indian textile Products being present in International Fares which keeps on
going all over the world.

As the Rupee is depreciated much in terms of dollars then also it is not a happy moment for
exporter because there is very less demand of textile products all over the world.

*c
Textile is the sector which is hard hit by recession as it affected millions of Indian all over the
country. Government can¶t do much as there is less demand abroad result in poor production that
ultimately results in job cuts. Over 5 million lost their job in textile sector which result in most
affected sector of a country.

Conclusion is that being one of the biggest sectors of a country Textile sector
provides livelihood to millions of Indian all over the country so Government has to take all
possible steps to bring this sector in a good position so that it reaches its target of $50 billion by
2010.

*¦
8
#

1)‘ www.economywatch.com
2)‘ www.indiamart.com
3)‘ www.indiatimes.com
4)‘ www.ministryoftextiles.com
5)‘ www.news.bbc.co.uk
6)‘ www.wikipedia.com
7)‘ Foreign Exchange and risk Management by C. Jeevanandam.
8)‘ Business Standard Magzine.

*Ñ