AHMEDABAD: Indian textile industry is estimated to reach USD 115 billion by the year end with an annual growth projection of 16 per cent, Assocham said today.
The growth will trigger corresponding demand in ancillary industry, including machinery and accessories, apart from demand from the emerging rural market, a Associated Chamber of Commerce and Industry of India (Assocham) report said today.
Moreover, increased exports to the tune of USD 50 billion clearly indicate a tremendous need for increased production, the report titled 'Textile Industry in India' said.
An estimated growth of 11 to 13 per cent in non-woven sector highlights the need for new technology, machinery and accessories in India, it said.
Textile machinery sector at present meets 45-50 per cent of the overall demand of the domestic textile industry whose main constituent is ginning, spinning, weaving and processing, the report stated.
Tamil Nadu specialises in production of spinning and allied machinery followed by textile testing equipment, while Gujarat is the leader in synthetic filament yarn machinery production which is translated as the textile machinery worth Rs 5,010 crore is coming from the six clusters namely Ahmedabad, Bangalore, Coimbatore, Ludhiana, Mumbai and Surat, it said.
The Textile Engineering Industry (TEI) Census conducted by Government of India unfolds over 1,446 units of which 598 units produce complete machines and about 848 units are producing parts and accessories as well as equipment for testing and monitoring of fibres and textiles.
The 11th Five Year Plan (2007-2012) had projected India securing a 7 per cent share in the global textiles trade by 2012. At current prices, the Indian textile industry is valued at USD 55 billion, 64 per cent of which caters to domestic demand, the report said.
Global economic slump badly hit textile exports during 2009-10, but then they recovered and remained slightly above the target during 2010-11.
The current fiscal year set the target of export of textiles and garments to around USD 28-30 billion. The US and EU, account for about two third of India's textiles exports, it said.
According to the statement, the other major export destinations are Canada, UAE, Japan, Saudi Arabia, Republic of Korea, Bangladesh and Turkey.
The textile industry currently contributes about 14 per cent to industrial production, 4 per cent to GDP, and 17 per cent to the country's export earnings, the report stated.
The Ministry of textiles, expects the technical textiles sector in India to grow by 11 per cent year on year to attain a market size of USD 14.8 billion by 2012-13 from the current size of USD 9.9 million.
Source : economictimes.indiatimes.com