Mumbai: India's total textile and apparel industry size both domestic and exports is projected to grow at a CAGR of 9.5 percent to reach USD 223 billion by 2021 from the USD 89 billion in 2011, according to a white paper by industry body Ficci and research firm Technopak.
"India's total textile and apparel industry size is estimated at USD 89 billion in 2011 and is projected to grow at a CAGR of 9.5 percent to reach USD 223 billion by 2021.
"The domestic textile and apparel market in India is worth USD 58 billion and has the potential to grow at a CAG of 9 percent, to reach USD 141 billion by 2021," the white paper on 'Challenges in Textile and Apparel Industry' said.
Overall, India's textile and apparel exports were at USD 31 billion in 2011 and are growing at an annual rate of 10 percent since 2005. Apparel exports contribute the most to the overall exports in terms of value, followed by contributions from fibre, yarn and fabrics.
However, fibre exports have the highest CAGR with substantial growth in recent years.
India's share of the world's textile and apparel exports stands at 4.5 percent. It is estimated that due to the increasing shift of textile and apparel production to Asian nations and the deteriorating export-competitiveness of China, this figure will grow to 8 percent by 2020, with a total exports value of USD 82 billion.
This growth, from 4.5 percent to 8 percent of world trade, will open up huge potential for Indian players, the report said.
"The recession in textile industry seems to be over. Investment in weaving and processing segments is required to strengthen value chain and bankers commitment level to serve the client," Ministry of Textiles, Deputy Director S P Verma said at a FICCI organised annual conference on textile and apparels TAG 2012 here.
He also said the important thing is to meet challenges that have proposed on infrastructure development, recycling and textile economic processing.
In the inaugural session Peush Narang, principal consultant, at Technopak Advisors said the global share of textile industry was 4.5 percent in 2011 and is expected to be 6 percent in 2016 and 8 percent in 2021. Globally, apparel industry is expected to grow at a CAGR of 6 percent.
He said EU and USA has still not recovered from 2008 crisis and trend is likely to continue. China and India is an emerging hub in apparel industry. India has to go far beyond China.
Throwing a light on challenges he said, "Rising cost, raw material cost and increase in volatility in raw material prices. Labor unrest, poor work environment and supply chain problem (lead time) are few challenges which can be solved by sincere efforts...".
First Published: Wednesday, October 10, 2012, 20:06