Govt Scheme for tech upgrade
The Indian textile and apparel market is projected to reach US$225.7 billion by 2024, growing at a CAGR of 14.2% during 2019-2024. It was worth US$102.2 billion in 2018.
The Government is making investments under the Scheme for Integrated Textile Parks and the Technology Upgradation Fund Scheme for training workforce and to encourage private investment in the Indian textile and apparel industry.
In India, the textile and apparel industry is one of the oldest industries that has witnessed numerous developments over the years. The modern textile industry, however, came into recognition in the early 19th century with the establishment of the first textile mill in Calcutta.
Today, the textile and apparel market has become a vital contributor to the Indian economy. This can be attributed to the abundant availability of raw materials used for manufacturing apparel such as cotton, silk, wool, etc.
Indian Textile and Apparel Market Drivers:
India represents the largest producer of jute and cotton and the second-largest producer of silk. Due to the high abundance of raw materials coupled with cheap labour costs, the cost of manufacturing textile and apparel is significantly lower than many other competing countries.
India currently has one of the world’s largest young population. Currently around half of the total population is below 25 years of age. This age group represents one of the biggest consumer group of textiles and apparel and is expected to drive the spending over the next five years.
Catalyzed by increasing penetration of the internet, online retailing has witnessed strong growth in the country. Consumers are now looking for ease of shopping, multiple options, better offers, and easy return policies. The growth in online sales has enabled the textile industry to reach consumers residing across every corner of the nation.
Due to a change in buying habits, consumers are now shifting from need-based clothing to aspiration-based clothing. Contrary to previous years, where Indian consumers purchased fashion items as and when required, buying clothes has become more than a basic need; it is now a reflection of aspiration, personality, and a status symbol. Though basic textiles continue to represent a part of the consumer’s basket, the demand for aspirational clothing has increased significantly in recent years.
Profile of Key Players: Welspun, Vardhman Group, Alok Industries Limited, Raymond Limited, Bombay Dyeing and Garden Silk Mills Limited. fiinews.com