1. The Indian textiles industry, currently estimated at around $ 108 billion, is expected to reach $ 223 billion by 2021.
2. The industry is the second largest employer after agriculture, providing employment to over 45 million people directly and 60 million people indirectly.
3. The Indian textile industry contributes approximately 5 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production (IIP).
4. The industry is facing challenges such as the current bull run of cotton prices, the possible devaluation of the US Dollar called for by President Trump, strength of the export demand and global economic conditions.
5. On the other hand, new textile markets and innovation (fueled by the developments in textile chemicals & auxiliary segment) are providing new opportunities to the companies in this sector.
6. Indian textile exports is facing increasing competition from Bangladesh and Vietnam, which have robust government policies supporting the local textile industry.
JULY - COTTON YARN EXPORTS FALL FOR 3 MONTHS CONSECUTIVELY
1. Exports in the last three months experienced consistent fall in the last three months due to sharp decline in demand in importing countries such as China, Bangladesh and South Korea, besides duty-free access given by China to competing Pakistan.
2. Considering the large-scale investment in the spinning sector and sluggish demand in the domestic markets, exports are the only avenue to ensure uninterrupted production and capacity utilisation.
3. The cotton yarn sector has been one of the pillars of the Indian textile industry and is also highly modernised. Driven by technology, it provides sustainable income to farmers.
JUNE - CHINA TEXTILE CAPITAL SUZHOU STRUGGLING BEFORE TRADE WAR
1. woven is included on the list of US$200 billion worth of Chinese goods which has been covered by a 10 per cent tariff since September and a 25 per cent tariff since May.
2. Last year, China’s textile exports rose 8.12 per cent from a year earlier to US$119 billion, partly because Chinese companies were racing against time to export to the United States before the expected tariff increase at the start of January.
3. But as the front loading has worn off, the effects of the trade war have become more apparent, and in the first five months of 2019, textile export growth slowed to 1.5 per cent year-on-year to US$48 million.
4. In the first four months of 2019, Wujiang’s exports fell 7.6 per cent from a year earlier to US$4.76 billion, while its level of imported material plunged by 23.7 per cent to US$1.75 billion, according to local official data.
5. Wujiang’s total trade with the US, the district’s largest overseas market, fell by 12 per cent during the first four months of 2019. According to the local government, the trade war has affected at least 770 exporters in Wujiang, of which 541 have products included on the US$200 billion tariff list.
6. Although, even before the US tariffs rose to 25 per cent in May, these companies had exported 28 per cent less between January to April than they did at the same time last year.
7. the price of FDY150D, a commonly-used super thin fibre, has dropped from nearly 8,900 yuan (US$1,294) per tonne to 8,050 yuan per tonne in May, a decline of nearly 10 per cent. This drop in price, which depreciated the value of its yarn inventory, was cited by Suzhou Jinzhu as one of the reasons for the closure.
8. Factories need more than 40 days on average to clear their inventories of woven fabrics, according to information from the Shengze Foreign Trade Public Service Platform database.
TECH-IN-TEXTILE
1. Smart textile is adding more value to the wearer with novel technologies like 3D-Printing clothing, NFC Interactive Clothing, VR- Model, Color-Changing Fabric, and self-heating fabrics.
2. In 2018, the market size value of smart fabric was USD 878.9 million and is anticipated to grow at a CAGR of 30.4% from 2019 to 2025. China and India are the two major manufacturers of smart fabrics.
3. The modern textile machinery is featured with the electronic controlling system, computer-aided design, automated inspection, automated material handling devices, numerical control machine tool, statistical process control, production planning/inventory management software, pick/place robots, and nanotechnology to improvise textile machinery, processing, and manufacturing.
SUSTAINABILITY
1. According to a report by Global Fashion Agenda, the amount of clothing being purchased is expected to rise by 63%, from 62 million tons today to 102 million tons in 2030.
2. 33% of consumers have switched brands to support sustainable fashion and 50% of shoppers plan to switch brands to eco-friendly ones in the future, according to the same report.
3. China and India are manufacturing sustainable apparel to meet the market need. Global Lifestyle Monitor stated, 65% of consumers in emerging markets actively seek out sustainable fashion while 32% or less in mature markets.
CONSUMER TRENDS
1. The mass-market consumerism of China and India is expanding their focuses on small-batch consumption, regionally produced high-quality textile and clothing manufactured at a higher price point, in comparatively small runs.
2.Globalization has also given voice to customers from various cultures. The idea of globalization is not to get uni-culture but to get multi-culture and slowly we are grasping the diversity of human culture.
GROWTH POTENTIAL
1.The textile and apparel industry is among the largest in the world with the value of USD 2.5 Trillion and employing around 60 million people along its global value chain, stated by United Nation Economic Commission for Europe.
2. India is ready to do more manufacturing – four-year-old” Make in India” plan would raise manufacturing’s GDP share from 16% to 25% by 2025.
Source:business-standard, fibre2fashion, thehindubusinessline, scmp
