To earn the foreign exchange/foreign currency it is necessary to increase export
India is the second-largest textile-producing country in the world.
India is the world’s third-largest textile exporter country in the world.
As India, our agricultural production is more than a requirement to cash remaining production it is necessary to increase export.
What’s in it for me?
- Introduction to textile export of India
- Top customers countries
- The demand for Indian textiles in the world
- Top competitor countries
- Government policies
- Effect of the dollar price
- Future of Indian textile export
Introduction to textile export of India
India is the world’s second-largest textile producer and third largest textile exporter in the world. The textile industry in India is the second-largest employment providing segment after agriculture.
So it is simply that if the Indian textile industry grows then employment also will grow up to the requirement. But the requirement of the Indian consumer is less than the production. To continue the production and creating the employment we export the textile.
Basic statistics of export
Last year the market shear of the Indian textile industry in global textile export was 5%. Indian textile industry includes all types of textile and handlooms, which was US$140billion.
In the year 2018 in which the domestic consumption was approximately USD$100billion and sending it to other countries, was US$40billion.
By the expectation of Indian market experts until the year 2025 this industry will cross the US$300billion dollar. And this mince the shear of Indian textile export will be of nearly 15%.
Total textile apparel industry contributes 2.3% of total GDP, by archiving 13% of total industrial production and around 12% of total export.
As we discussed above the textile industry is the second-largest employment-generating industry, after the agricultural industry. it generates 45 million employment per year and the expectations are it will grow to 55 million till 2025.
Top Customers Countries
As we are exporting the textiles from India then there will some customers also who are importing our product. When we are discussing the Indian textile export then it is very essential to know about customer countries. Who are importing the textiles from India.
Following are the top Indian textile importer countries
- United State
- United Arab Emirates
- United Kingdome
Basics about above countries
The United States is the biggest importer of Indian textile in the year 2018. They imported a textile of US$8,097,086.18 and it was 15.68% of total material sent to America.
Bangladesh is also a big importer of Indian textile in the year 2018. They imported a textile of US$2,493,002.83 and it was 28.53% of the total to Bangladesh.
United Arab Emirates
UAE is also a big importer of Indian textile in the year 2018. They imported a textile of US$2,464,650.13 and it was 8.64% of the total to the United Arab Emirates.
United Kingdome is a fourth big importer of Indian textile in the year 2018. They imported a textile of US$2,187,879.01 and it was 22.46% of the total to United Kingdome.
China is also a big importer of Indian textile in the year 2018. They imported a textile of US$1,837,912.91 and it was 11.23% of the total to China
Germany also a big importer of Indian textile in the year 2018. They imported a textile of US$1,700,524.38 and it was 19% of the total to Germany.
Spain also a good importer of Indian textile in the year 2018. They imported a textile of US$1,053,071.69 and it was 25.79% of the total to Spain.
France is a big importer of Indian textile in the year 2018. They imported a textile of US$968,886.42 and it was 18.37% of the total to France.
Italy is also a big importer of Indian textile in the year 2018. They imported a textile of US$887,051.42 and it was 16.07% of the total to Italy.
Pakistan is also an importer of Indian textile in the year 2018. They imported a textile of US$883,849.67 and it was 37.69% of total material sent to Pakistan.
This all and lots of countries like this are imports a textile from India. This indicates that India produces all types and all grade of textile which fulfill the requirement of the world.
The demand for Indian textiles in the world
India is the third highest textile exporter country in the world. And second-highest textile producer country in the world. The annual production of the Indian textile market was US$140billion.
In which we have sent US$ 40 to the other country and we use around US$100billion. These numbers show the demand for Indian textile is very high in the overseas market.
As India produces nearly all types of textiles. So the lots of countries are want to make a partnership with us as an importer. Now the Indian currency is at the lowest level of its history. In this time there are very strong chances of increasing the demand for Indian textiles.
Top Competitor Countries
As we know we are the world’s third-largest textile exporter country. But some are the countries who are trading to overtake us. We also want to go on top for which it is wary necessary to study the world’s top competitors.
The following are top competitors for India.
- European Union
- United State
- Republic of Korea
- Chinese Taipei
- Hong Kong
If we are discussing the textile industry in India, then all the results will come in number. This means to understand the Indian or any textile market, import or export the statistics are important.
But because of the size and complexity of the Indian textile market, it is very difficult to collect actual data. But the approximate data or statistics of 2018 are as follows.
Approximate data of indian textile industry
- The largest producer of cotton and jute.
- The second-largest producer of polyester, Silk, and Fiber.
- Second largest employment producing sector in India after agriculture.
- The industry contributes 2.3% of total GDP.
- 13% of the total industrial production comes from the textile sector.
- Around 12% of export earning comes from the textile industry.
- This sector creates 45 million of employment per year it will 55% in 2022.
- 100% FDI allowed in the textile sector.
- FDI of US$3.1billion comes in this sector during 2018-19.
- Sector grace expected during 2019-21 is 28%.
- Industry expected to rich US$223 in 2021.
- The current domestic industry stood at US$140billion USD$100 from the domestic market and US$50 is from export.
- Domestic apparel consumption is of US$74 billion.
- Technical textile US$7 billion.
- Actual Textile export is US$20.5billion.
- Apparel export is US$16.1 billion.
- Handlooms export US$3.8 billion.
For all the industrial sector government has formed a separate team for monitoring the transaction and flow of a particular industry segment.
This team can provide information to the government of India and suggest the policies. After studying the report provided by the team, and the suggestions of the related minister’s. the government can prepare their policies.
These policies depend on the countries condition and current trends. The current policies are nearly 13 years old which are not that much capable to grows the industry. So the government is now applied to the new policies developed in the year 2020.
Some points on which government concentrating to develope policies are.
- To develop a modern, competitive, and sustainable textile industry.
- The main aim to develop a new policy is to focus on increasing the manufacturing of the textile.
- The government wants to promote the MAKE IN INDIA campaign in this industry.
- The aim is to build the export potential for every district and cluster.
- Also, the focus will be on attracting the investment
- The five-year aim is to increase textile export to the next level.
To know more visit – Indian cotton textile industry 2020-21 in detail.
Effect of Dollar Price
India is a developing nation so Indian currency can fluctuate by any small fluctuation in the market of India or customers.
So to understand the Indian textile export it is very important to know the effect of dollar priors on the base of textile export.
When any the price of the currency of any country is get reduced as compared to US$. then the total valuation of overall countries’ market and others get reduced.
This condition shows a particular country as poor as compared to other companies. Also as importers have to pay them in US$ and exporter reserves this in ₹ Indian rupees.
Because of this importer fills like they are revising the product at a very low price. They can come again and again to purchase the products.
So if we relate this with the Indian textile industry. Then from the raw material of the textile to the final maximum of all the work before export, the textile is done in India.
This means all expenses are done in the form of rupees and this will know so affects the price of the dollar. So the seller will sell the product at Indian price and it will cheap for the importer country.
Finely the sale of the Indian textile will increase also the price of imported. goods will get high so the competition from the forage goods will also reduce in India.
Before someday their one news-wise viral, in which anchored says that China can manipulate their currency. and show as a poor country to increase the export, this and lots of things. like this deferent country are done to increase the export.
Future of Indian textile export
As we discuss above India is the highest textile-producing country also the Indian market also has a good concession. Government of India developing the new scheme to increase production and employment in this field. These things are syndicating towards the bright future of the Indian textile industry.
By the future planning of the Indian government Indian textile industry will grow to US$230 until the year 2021.
The grace expected in this industry till 28% from 2019 to 2021 also the government expecting the employment will increase to the 55million employees per year in this sector.
All the above data comes from the government also the government going to implement a new textile policy this means the future of the Indian textile industry is bright.
- India is a second-largest textile producing and third-largest textile exporting country in the world
- US, Bangladesh, Etc. are the top customer country for the Indian textile industry
- The demand for Indian textile is increasing with the production
- China is the top competitor for Indian textile industries
- By the statistical reports, the Indian textile industry is one of the fastest-growing textile industries in the world.
- Government policies are focusing mainly on the make in India
- With increasing the price of the dollar the textile industry also will grow.
- The future of the Indian exile industry is bright.
For more information visit – Clothe worn in India, Introduction of Indian clothing 2020
Textile export means to sell the textile from India to overseas.
The USA is the biggest market for the Indian textile industry.
The USA is the best country for export from India.
European Union is largest importer of textiles in the world.