PRESENTATION TO SECRETARY (TEXTILES) Indian Textiles and Clothing Industry: Issues and Recommendations
CONTENTS ▪ Introduction to CITI ▪ Global Textile and Apparel Trends ▪ Overview of Indian Textile & Clothing Sector ▪ Overview of Different Segments of Textile Industry ▪ Key Issues and Recommendations ▪ Annexures 2
Introduction to CITI ▪ Leading industry chamber for T&C Sector of India, representing the leading regional & industry associations and 17 major corporate members, thus, covering the entire textile value chain from farm to garments. ▪ Cumulative annual turnover of CITI members is around Rs.2 lakh crores plus. ▪ Interface between the Government and Industry for all policy related inputs. ▪ Textile Sector Skill Council (TSC) – a subsidiary of CITI received Champion Sector Skill Council Award from the Hon’ble Finance Minister Shri Arun Jaitley in 2017. ▪ CITI’s subsidiary – CITI – Cotton Development and Research Association (CITI – CDRA) for supporting cotton extension and seed development activities. Currently, CITI – CDRA is working with cotton farmers in the districts of Rajasthan, Madhya Pradesh and Maharashtra. ▪ MoUs with international textile associations- Taiwan, China, Korea, Bangladesh, Uzbekistan. 3
Our Services CITI CORROBORATES FOR AND FACILITATES… FORMULATING INTRODUCING Trade policies, import-export related procedures New technologies practices & services relevant to the industry ORGANISING PROVIDING Conference, Seminars and Workshops Technical and strategic insights to the industry GENERATING ANALYSING Industry participation in trade fairs, exhibitions and Authentic data to gauge and project industry business meets performance PROMOTING Investment and joint ventures in the textile sector and MOUs 4
Textile & Clothing Manufacturing Value Chain Finished Apparel/ Home Fibre Yarn Greige Fabric Fabric Textiles Ginning Spinning Weaving & Finishing Cut & Sew Knitting (Dyeing/Printing) 5
US$ Bn. Global textile & apparel trade Global Textile & Apparel Trade The global trade stood at US$ 763 CAGR: 2% bn. in 2017, 827 788 776 763 752 743 growing at a CAGR 728 643 641 of 2% since the last 616 556 466 decade. 435 444 404 444 396 429 348 356 340 315 Apparel constitutes largest share in the 361 353 348 Global T&A trade 332 332 314 319 293 287 276 241 having a share of 58%, followed by 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 fabric with a share of Textile Apparel Total 19% in 2017. Data Source: UN Comtrade
China is experiencing slowdown in its apparel exports, thus creating opportunity for other competing countries China Apparel Exports US$ Bn. China 193 Annual growth 186 180 170 166 161 159 144 140 136 26% 122 115 17% 18% 18% 17% 91 16% 16% 78 6% 10% 67 4% 58 3% 54 2% -1% -7% -10% -13% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Data Source: UN Comtrade & Wazir Analysis • Major reasons for growth slowdown in China’s apparel exports • Growth of domestic demand • High wage growth • Movement of manufacturing towards more value added segments • Relocation of manufacturing to neighboring countries • Trump Tariffs – Proposed US tariffs on China will also have significant impact
There is a need to focus on Synthetic Textiles to Achieve the Desired Growth Global Total Fibre Demand and Cotton Production (Bn. Kg) Polyester, the most 137 widely used MMF fiber 99 Increasing gap. 95 88 The gap in 2018 76 has seen a growth in being 69 Bn. Kg Fiber Demand 52 demand in recent 32.5 27 26 26 21 20 years. Cotton Production 2000 2010 2015 2018 2020 (P) 2040 (P) Polyester demand will be almost three times Global Fibre Consumption Trend to that of Cotton in 64% 56% 55% 2040. 48% Cotton Widening gap 42% 38% 35% between 33% Polyester 37% 27% Polyester and 26% 25% 23% 23% Cotton fibre 19% 18% 18% Others 13% consumption 2000 2005 2010 2015 2017 2040 (P) Data Source: PCI Fibres & Wazir Analysis
Indian Textile Sector- Importance ▪ 2nd largest global manufacturer and exporter ▪ Largest global producer of cotton and 2nd largest producer of Polyester and Viscose ▪ Presence of complete value chain – from fibre to fashion ▪ Largest industrial employer – employing more than 10 crore people directly and indirectly ▪ Approx. 12% share in India’s total exports ▪ Contributes about 10% of manufacturing production 9
Textile and Apparel Clusters in India Ludhiana Panipat Delhi- NCR Bhilwara Kanpur Ahmedabad Indore Kolkata Surat Vapi Nagpur Kolhapur Mumbai, Thane, Bhiwandi Bangalore Chennai Selam, Erode Tirupur, Coimbatore
India’s Textile and Apparel Exports India’s Top Markets (2017-18) Indian Textile & Apparel Exports (in US$ Bn.) 37.5 37.6 36.7 36.7 36.5 1.5 1.6 EU, 26% 1.7 1.9 1.7 4.8 5.3 5.1 5.1 5.2 Others, 33% 15 16.8 17 16.7 17.5 4.9 5.3 4.8 4.6 4.5 5.4 China & HK, 4.8 4.3 4.4 4% 4.1 USA, 22% 5.8 4 Bangladesh, 3.9 3.7 3.6 6% 2013-14 2014-15 2015-16 2016-17 2017-18 UAE, 9% Fibre Yarn Fabric Apparel Home Textiles Others Total 11 Source: DGCI&S, Chapter (50-63)
India’s Textile and Apparel Imports India’s Top Suppliers (2017-18) Indian Textile & Apparel Imports (in US$ Bn.) 7.0 0.9 6.0 6.0 5.9 0.2 5.3 0.8 0.8 0.8 0.8 China & HK, 0.2 0.2 0.7 0.2 0.6 39% 0.5 Others, 41% 0.1 0.6 0.4 2.1 1.7 1.9 1.8 1.8 1.1 0.9 1.1 1 1.1 2 1.9 1.5 1.4 1.3 Vietnam, 3% 2013-14 2014-15 2015-16 2016-17 2017-18 USA, 8% Australia, Bangladesh, 4% Fibre Yarn Fabric Apparel Home Textiles Others Total 5% 12 Source: DGCI&S, Chapter (50-63)
Cotton Fibre Key Statistics ▪ India is the largest producer of cotton in Area (In Million Production (In Million Yield State Hectares) bales of 170 kgs) (kgs/hectare) the world. However, the cotton sector of Punjab 0.29 1.15 672 India faces certain challenges: Haryana 0.67 2.25 572 Rajasthan 0.58 2.2 640 NORTHERN • Cotton yield much lower than major ZONE 1.54 5.6 617 cotton producing nations Gujarat 2.62 10.4 674 • High level of cotton contamination Maharashtra 4.21 8.5 343 MP 0.6 2.05 578 • High moisture content in seed cotton CENTRAL ZONE 7.43 20.95 479 • No bale tagging system- cotton Telangana 1.9 5.5 493 statistics not updated Andhra Pradesh 0.64 2.05 541 Karnataka 0.55 1.8 560 • Low gin-out ratio (29-33%) Tamilnadu 0.19 0.55 505 • Imports of approx. 15 lakh bales of SOUTHERN cotton (30% is Extra Long Staple ZONE 3.27 9.9 514 Orissa 0.15 0.35 410 cotton) Others 0.05 0.2 680 TOTAL 12.4 37.0 505 13 Source: CAB Report: 16.06.2018
Manmade Staple Fibre & Filament Yarn Production of Manmade Staple Fibre Production of Manmade Filament Yarn The production of man-made staple fibres was 1,319 The production of filament yarn was 1,187 mn. kg in mn. kg in 2017-18. It has seen a minuscule change 2017-18. It has declined at a CAGR of 2% in the over the last five years. last five years. Values in Mn. Kg Values in Mn. Kg Year 2013-14 2014-15 2015-16 2016-17 2017-18 CAGR Year 2013-14 2014-15 2015-16 2016-17 2017-18 CAGR (P) (P) Viscose 361 365 342 365 370 1% Viscose 44 44 45 46 47 2% Polyester 846 882 894 899 852 0.2% Polyester 1,212 1,158 1,069 1,060 1,090 -3% Nylon 24 33 37 41 39 13% Acrylic 96 93 107 96 93 -0.8% Polypropy 13 13 13 11 11 -4% Others 4 5 5 4 4 0% lene Total 1,307 1,345 1,348 1,364 1,319 0.2% Total 1,293 1,248 1,164 1,159 1,187 -2% 14 Source: Office of Textile Commissioner
Spinning Sector Production of Spun Yarn • Most modern sector of Indian textile industry and globally The total production of spun yarn competitive in India stood is estimated at 5,676 mn. kg in 2017-18. • 2nd largest producer of spun yarn after China • Acknowledged as world class supplier of cotton yarn in terms of Break-up of Spun Yarn Production (2017-18) varieties, volumes, quality and price Man-Made • Capabilities to produces all kind of spun yarn including blended Fibre Fabrics 10% and MMF based yarns Blended 19% • Cotton yarn production stagnant over last 2-3 years and exports are declining Cotton 71% • Losing China market to Vietnam due to lack of level playing field Source: Office of Textile Commissioner
Weaving Sector • There has been considerable Installed Capacities Production India’s Weaving Sector The total production of woven increase in the shuttle-less comprises of 3 distinct sectors fabric in India stood at approx. looms in the country due to viz. organized mills, power loom 47 bn. sqm in 2017-18. government liberal policy for and handloom sector. power loom sector. • The mill sector share in woven Break-up of Woven Fabric fabric production is very low Installed Capacities (2016-17) Production (2016-17) (~5%). Item Units Khadi, • De-centralised Mill Power loom Wool Looms 69,000 5% and Sector constitutes 76% of the Silk (Organised Sector) 2% total woven fabric production. Handloom Powerloom 2.86 mn. 17% • Exports of fabric in 2017-18 Handloom 2.38 mn. was US$ 4.6 bn. Powerlo om 76% 16 Source: Office of Textile Commissioner
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