The Indian Textiles Industry has anoverwhelming presence in the economic life of the country. Apart from providingone of the basic necessities of life, the textiles industry also plays apivotal role through its contribution to industrial output, employmentgeneration, and the export earnings of the country.
Currently, it contributes about 14percent to industrial production, 4 percent to the GDP, and 16.63 percent tothe countrys export earnings. It provides direct employment to over 35 millionpeople, which includes a substantial number of scheduled castes, scheduledtribes, and women. The textiles sector is the second largest provider ofemployment after agriculture. Thus, the growth and all round development ofthis industry has a direct bearing on the improvement of the economy of thenation.
The Indian textiles industry isextremely varied, with the hand-spun and hand-woven sector at one end of thespectrum, and the capital intensive, sophisticated mill sector at the other.The decentralized power-looms/ hosiery and knitting sectors form the largestsection of the textiles sector. The close linkage of the Industry toagriculture and the ancient culture and traditions of the country make theIndian textiles sector unique in comparison with the textiles industry of othercountries. This also provides the industry with the capacity to produce avariety of products suitable to different market segments, both within andoutside the country.
The major sub-sectors that comprise the textiles sector include the organized Cotton/Man-Made Fibre Textiles Mill Industry,the Man-made Fibre / Filament Yarn Industry, the Wool and Woolen TextilesIndustry, the Sericulture and Silk Textiles Industry, Handlooms, Handicrafts,the Jute and Jute Textiles Industry and Textiles Exports.
THE ORGANISED TEXTILES INDUSTRY
The Cotton/Man-made fibre textilesindustry is the largest organized industry in the country in terms ofemployment (nearly 1 million workers) and number of units.
Blended and 100% non-cotton yarnshave, however, shown a consistent increase year after year. During 1999-05, thecapacity utilization in the spinning sector was between 80% to 93%. Weavingcapacity in the organized sector, along with the number of composite textilesmills, however, has stagnated, because the Government policy had permitted onlymarginal expansion in the organized mill sector.
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