Indian Textile Industry and how has Contract Manufacturing Contributed in its Growth
25 Feb 2022
India is the 2nd largest
in the world and one of the few countries that are capable of completing the whole process of production, from the yarn to the final product, ready for the market. Earliest to come into existence, it accounts for 14% of the total industrial production and contributes to nearly 30% of the total export. This sector makes up around 2.3% of the GDP and is the biggest employer with around 45 million workers, according to the reports from FDI India. Recognized as one of the best sourcing destinations for garments and textiles, the Indian textile industry’s greatest strengths are a strong production base of a wide range of fibres and yarns, an abundance of raw materials, availability of skilled manpower, competitive manufacturing costs etc.
What Union Budget 2022-23 has in the store for this sector?
Indian textile industry
is one of the most important pillars of the Indian economy in terms of output, foreign exchange earnings and employment. Thus, the growth and development of this industry have a direct impact on India’s economy. Finance Minister Nirmala Sitharaman presented the Union Budget 2022-23 and announced allocation for the textile sector which will be 8.1% higher than the previous year's budget and seven mega textile parks have been planned to double the industry size to $300 billion by 2025-26. Steps like these taken by the Government are intended to strengthen the micro, small and medium enterprises segment which holds the major share in the textile and clothing sector.
apparel manufacturing sourcing companies in India
and sourcing by global retailers to India are expected to have an annual increase of 12% per cent. The overall textile market of India is expected to grow at a CAGR of 10% to reach $190 billion by 2025-26. Top clothing manufacturers like Raymond textile and apparel, Billoomi fashion, Aquarelle group, Century Enka etc. and top clothing companies in India like Levi’s, Flying Machine, Monte Carlo, Lee, Van Heusen and Numero Uno are keeping the clothing industry up to date and making sure that the industry is growing and evolving with changes in fashion trends to make India the most preferred sourcing destination.
The US restrictions on Chinese exports have benefitted the Indian apparel sector and the
textile contract manufacturers
which have resulted in an 18% increase in garment export to the US. Hence, finding a relevant contract manufacturer who can meet the company’s business needs becomes an important aspect. Industry Experts, a B2B sourcing platform, connects the brands with the suitable contract manufacturer according to the business needs.
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