Indian Textile Industry: A Quick Snapshot
India’s textile industry is centuries old. The sector is one of the largest contributors to the country’s exports and accounts for 13% of total exports. It is a labour-intensive industry and employs about 45 million people directly, and 25 million people indirectly. During 2015-16, India’s textile exports stood at $40 billion USD. It is estimated that, overall, the industry will be valued at $230 billion by 2020. Walmart, H&M, Carrefour, C&A, Tommy Hilfiger, Marks & Spencer, Zara, Promod, Benetton, and Levi’s are some of the foreign textile companies invested in or working out of India.
Why is India a preferred destination for international clothing and fashion brands?
Bangladesh, Vietnam, Sri Lanka, China, there are many countries known for their domestic textile industries. However, India is preferred by companies who want to source very high-quality raw material - cotton, silk, and jute. Globally, India is ranked second in silk and cotton production, and number 1 in jute production.
Companies know that they can negotiate and get the best quality 100% organic cotton at very competitive prices. And, as in other parts of Asia, labour is affordable and cost-effective in India, and costs considerably less than employing Chinese workers. Tirupur in South India is especially known for its competence in producing knit fabric generally used to make t-shirts. It is important to find suppliers who are specialists in specific kinds of fabric.
Why partner with local Indian textile firms?
International firms based in every part of the globe desire to take advantage of India’s strengths in this sector. For instance, a European fashion label may be interested in tying up with local manufacturers to create a 100% organic cotton apparel line; a tech company may want to place a large order for tote bags for an event, or t-shirts for every employee in their company, or import a consignment of high quality, customised leather articles, like keychains, wallets, or bags to gift to their clients. The use cases may vary but the challenge in identifying a reliable local supplier or manufacturer in India remain.
Why hire Arsha Consulting facilitate this process?
A local partnership with a consultancy firm such as ours is critical to identify a reliable Indian supplier within the textile industry. We will help you conduct a feasibility study, identify and shortlist prospective suppliers, conduct due diligence, carry out a pilot, commission a project and ensure production of quality goods. We will also help you navigate customs and transportation so the finished goods reach your doorstep - in Europe or anywhere else in the world, on time. So, contact us today!
Preeti Prakash | Journalist