Fuelled by a rise in population and increase in income levels, the domestic textile and apparel industry is expected to touch R1,032,000 crore (around $220 billion) from the current R3,27,000 crore (around $70 billion) by 2020, a report by consultancy firm Technopak said on Friday.
Factors such as emergence of increased organised players and rising penetration of retailers into smaller cities is adding to the industry's growth, the report said.
"The textile and apparel industry is a significant contributor to the country's GDP (gross domestic product). Yet there is no glamour quotient attached to it. The industry needs to project itself as a brand and bring in innovation. Further, it is important for the industry to identify and create new mega clusters — Madurai, Mundra, Ambala and Mangalore — having tremendous potential for manufacturing," said Arvind Singhal, chairman, Technopak Advisors.
At present, India's export share in the world trade is 4.5 per cent and has the potential to reach 8 per cent by 2020. The high growth of Indian exports is possible due to an increased sourcing shift from developed countries to Asia and India's strengths as a suitable alternative to China for global buyers. For this, investments to the tune of R3,20,000 crore ($68 billion) will be required by 2020 across the textile supply chain to tap the potential market.
Women's apparel market, with a growth rate of 12 per cent, is leading the growth trend, compared to menswear at 9 per cent, the report said.
Other high-growth categories include innerwear, kidswear, plus-size apparel, workwear, technical textiles and home textiles.