The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a pivotal role through its contribution to industrial output. Employment generation and the export earnings of the country. Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP, and 16.63 percent to the country's export earnings. It provides direct employment to over 35 million people, which includes a substantial number of SC/ST, and women. The Textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.

The Indian textiles industry is in a stronger position than it was in the last six decades. The industry which was growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate of 9-10 percent and is expected to grow at a rate of 16 percent in value terms and will reach the level of US $ 115 billion (exports US $ 55 billion; domestic market US $ 60 billion) by 2012. The clothing and apparel sub-sector are expected to grow at a rate of 16 percent in volume terms and 21 percent in value terms, and textiles exports are expected to grow at a rate of 22 percent in value terms, by 2012.

Increased Investment and Plan Allocation

Investment in the textiles sector in the past three years increased from Rs. 11,628.00 crores in 2004-05 to Rs. 21,850.00 crores in 2005-06 and Rs. 31,000.00 in 2006-07. It is estimated that total investment in the textiles and clothing industry between financial years 2004-07 was around Rs. 64,478.00 crores. It is expected to reach Rs. 1,50,600 crores by 2012. This enhanced investment will generate 17.37 million jobs by 2012. This will comprise 12.02 million direct and 5.35 million indirect jobs.

In 2007-08, the plan allocation for Textiles has been enhanced by 66.27% over that of 2006-07. The Ministry of Textiles is one of only two ministries that has seen such a high level of incremental budgetary support for its Annual Plan.

Exports

The Indian textiles industry is an export intensive industry, and about one third of its total production is exported in same form or the other. Through export friendly Government policies and positive efforts by the exporting community. Textiles exports increased from US $ 12.45 billion in 2002-03 to US $ 17.85 billion in 2005-06, and are estimated at US $ 19.24 billion in 2006-07. Exports of textiles and clothing, till 2004-05, had grown at a moderate pace. However, in 2005-06, they registered a sharp growth of 22%. This sharp rise export was due to the elimination of trade quotas in the global textiles and clothing trade after over four decades of restrictions. w.e.f. January 1, 2005 (Post MFA) occupied with an increased flow of funds to augment capacities in the entire textile value chain, and favourable Government policies. Textiles exports are projected grow at a rate of 22% between 2007-2012 and will reach US $ 55 billion and attain a share of 7% in the global textiles trade by 2012.

Apparel and Clothing

The Clothing sector is an export intensive sub-sector and contributes about 40-45% to total textiles exports. It is a low investment and highly labour intensive industry: an investment of Rs. 1.00 lakh in the sub-sector creates 6-8 jobs. The growth of the garment industry had been hamstrung by the reservation of garment manufacture for the small-scale industry. As a result, garment units could neither attain optimal economies of scale, nor produce international quality garments. Keeping in view the changed situation, the Government de-reserved the woven apparel sector in 2002-03, and the knit-wear sector in 2005-06. The industry picked up momentum during the Xth Five Year Plan. It initially grew at 15-16 percent and, during 2005-06, the growth increased to about 20-22 percent. The catalyst for this accelerated growth rate was the end of the quota regime in the international market, growth in organized retailing, growing consumerism in the domestic market, and a favourable policy regime. During the Xth Five Year Plan, exports of readymade garments increased at the annualized rate of growth of 13.72%. Major change was witnessed in 2005-06 when it increased by 28 percent.

The investment requirement of this sub-sector by 2012 will be Rs. 21.800.00 crores, and will create incremental employment for a 56.40 lakh workforce, of which 28.25 lakh will be semi-skilled, and 11.30 lakh un-skilled. Seeing employment and export potential in apparel and clothing sub-sector, the Government will give priority to ensure its development and expansion. Efforts will be made to reform rigid labour Laws, and Brand promotion through the Public Private Partnership route. Fashion hubs will be set-up to provide Common Data, and marketing outlets to the industry.

Technology Upgradation Funds Scheme (TUFS)

The Indian Textiles Industry has, over the years, suffered from server technology obsolescence and lack of economies of scale, which in turn diluted its productivity, quality and cost effectiveness, despite distinctive advantages in raw material, knowledge base, and skilled human resources.

Given the significance of textiles industry to the overall state of the Indian economy, its employment potential and the huge backlog of technology upgradation, it was felt that to sustain and improve its competitiveness and overall long term viability, it is essential that the textiles industry has access to timely and adequate capital, internationally comparable rates of interest.

To address the above problem

The Technology Upgradation Fund Scheme (TUFS) was launched on April 1, 1999, for five years, and was subsequently extended upto March 31, 2007. During its initial years, the progress of the scheme was moderate and it gained momentum from 2004-05 onwards. The scheme has been further extended till 2012. Through, in the Xth Five Year Plan, Rs. 1,270.00 crores were allocated, the disbursal was Rs. 2,044.19 crores, which exceeded the plan target. From its inception till February 28, 2007, 8,595 applications were received involving, a project cost of Rs. 81,371 crores.

Infrastructure

Scheme for Integrated Textiles Park (SITP)

Though the Indian textiles industry has its inherent advantages, infrastructure bottlenecks are a prime area of concern. With a view to take advantage of the post Multi Fibre Arrangement (MFA) scenario, the Apparel Parks for Exports Scheme (APES) and the Textiles Centre Infrastructure Development Scheme (TCIDS) were launched in 2002 to provide world class export infrastructure at important textiles launched in 2002 to provide world class export infrastructure at important textiles centres. The objective of APES was to create exclusive export zones of apparel manufacturing. TCIDS was to modernize and fill in the gaps in the infrastructure at existing major textiles centres, to remove the impediments to production.

The performance of both Apparel Parks and TCIDS was restrained by the nature of assistance permitted. It was felt that there was a need to review both the schemes to examine the possibility for making provision for expeditious implementation of these schemes. Therefore, both the Schemes were merged into a new scheme called the 'Scheme for Integrated Textile Park (SITP)' in 2005 to neutralize the weakness of fragmentation of various sub-sectors of the textiles and non-availability of quality infrastructure. These parks would incorporate facilities for spinning, sizing, texturing, weaving, processing, apparels and embellishments. This scheme is based on the Public Private Partnership (PPP) model.

During the Xth Five Year Plan, 30 projects were sanctioned: Andhra Pradesh (4). Gujarat (7), Maharashtra (6), Tamil Nadu (6), Rajasthan (4), Karnataka (1), Punjab (1) and West Bengal (1). These parks will be setup by 2008-09 with an additional investment of Rs. 15,434.60 crores. The Integrated Textile Park at Palladam. Tamil Nadu is nearing completion. These parks will generate an annual production of Rs. 24,000.00 crores and will create more than half a million new jobs.

Human Resource Development

Human Resource Development (HRD) is one of the most critical inputs for industrial organization. The integration of the world textiles market has intensify competition, and in this scenario, to improve the market share in the international market and to face the unsought of imported textiles items, it is importation address the issue of HRD. The basic idea is to use intellectual capital to the optimum to improve productivity and the quality of textiles products.

National Institute of Fashion Technology (NIFT)

NIFT was established by the Ministry of Textiles in 1986 as the apex body for HRD for the textiles, garment and allied sectors. NIFT has recently been given Statutory Status through an Act of Parliament for the promotion and development of education and research in Fashion Technology. This Act empowers the Institute to award degrees to its students passing out from 2007. Through the support of the Ministry of Textiles, the Institute has emerged as an Institution of Excellence in the area of fashion education in the country.

A new extension centre was inaugurated at Rae Bareli in Uttar Pradesh on February 13, 2007.

Sardar Vallabhhai Patel Institute of Textiles Management (SVPITM)

SVPITM was set-up December 24, 2002, as a National level Institute for Textiles Management at Coimbatore, Tamil Nadu, to prepare the Indian Textiles Industry to face the challenges of the post-MFA era, and enable it to establish itself as a leader in the global textiles trade. The Institute had started a Two year full time Post Graduate Diploma in Textiles Management (PGDTM). The Institute has initiated the process to get affiliation to the All India Council of Technical: Education (AICTE) and reorganization to its two years Post-Graduate Diploma in Textiles Management (PGDTM), equivalent to MBA. SVPITM has applied to Bharathiar University, Coimbatore to recognize the Institute as a Research Institute. The Institute entered into a MoU with the Entrepreneurship Development institute of India, Gujarat for the establishment of a center for conducting the Open Learning Diploma in Business Entrepreneurship (OLPE).

Apparel Training and Design Centres (ATDC)

The Apparel Industry employs approximately 5 million workers, of which approximately 2.5 million are employed in the export sector. Thirteen Apparel Training and Design Centres (ATDC) are being run by the Apparel Export Promotion Council (AEPC). ATDCs have trained over 21,000 workers since inception. AEPC plans to set up 25 new centres in 13 States and 13 mobile centres during the XIth Five Year Plan. These additional facilities will on able ATDCs to train 57,625 trainees in addition to 30,000 students being trained by existing ATDCs. Further, 15,000 students would be trained through mobile centres.

Training needs by 2012

Garmenting will be the highest employment provider in the textiles sector. This has been acknowledged by the National Manufacturing Competitiveness Council (NMCC) and the planning Commission. This growth in employment opportunities will have to be under-penned by education and training at vocational institutes for almost six million trained workers.

In the Five Year Plan direct incremental employment opportunities will be created for a 6.5 million work force in spinning, weaving, knitting, processing and garmenting.