1.The Indian Textiles and Clothing (T&C) industry plays a crucial role in the Indian economy and contributes about 10% of industrial production and 2% of Gross Domestic Product (GDP) of the country. The industry also creates an employment opportunities for about 45 million people and accounts 13.61% of the export of the country with a share of 5.34% in textiles (HS Chapter 50 to 60) and 8.27% in clothing (HS Chapter 61 to 63) in the global market during 2016.
2. The domestic demand of textiles, which is characterised by demand from Household and Non-Household sector, plays a significant role in the overall growth and performance of the Textiles Industry of India. The household sector is the major growth driver and contributes about 53.39 % to the overall demand of textiles and clothing products.
3. In order to estimate the domestic demand for Textiles and Clothing in the household sector, the Textiles Committee has been publishing an Annual Report titled “Market for Textiles and Clothing (MTC)” since the year 1969.
4. The report estimates the per capita and aggregatedemand of textiles & clothing in the country by region, gender, area, income group etc. besides estimating the preference pattern by fibre, product groups viz. woven apparels, knitted apparels, home textiles, etc. in the household sector of the country. This is the only authenticated report available in the country, which provides domestic market size of textiles at disaggregated level.
5. The report is published on the basis of the textile purchase data collected bi-monthly from selected panel household across the country. The data base generated from the collected data is analyzed and findings of the report are published in the form of an annual Report. The latest annual report “Market for Textiles and Clothing (MTC): National Household Survey 2017” has been prepared by the Textiles Committee. Besides, estimating the domestic demand for 2015 & 2016, the report has also forecasted the market size for 2018.
I.The key findings of the “Market for Textiles and Clothing (MTC)” are as follows:
Domestic demand of Textiles in the Household sector: The overall market size of Textiles and Clothing including exports has increased from USD 145.71 billion in 2015 to USD 146.63 billion in 2016, which is expected to touch USD 164 billion by 2018. Out of USD 146.63 billion exports account for USD 35.43 billion whereas Household sector account for USD 78.28 billion followed by USD 32.91 billion of Non-Household sector in 2016. Thus the household sector contributes 53.39% to the overall market size of the Textiles and Clothing and the same has been analysed in detail in the MTC, 2017.
II. Aggregate demand of Textiles & Clothing in Household sector in terms of quantity and value:
The aggregate demand of Textiles & Clothing is 41.06 Bn metres in 2016 as compared to 38.54 Bn metres in 2015 and have experiencedan annual growth rate of 6.55 percent of expected to touch 45.32 Bn.Mtrs. by 2018, growing at a Compound Annual Growth Rate (CAGR) of 5.34 per cent between2011-2018 In terms of value, thedemand has increased to Rs.5261.53 Bn in 2016 as compared to Rs.4883.57 Bn in 2015 and have experienced an annual growth rate of 7.74 percent, which is expected to touch Rs.6204.02 Bn. by 2018, with CAGR of 9.54 per cent between 2011-2018.
III. Per Capita Demand of Textiles & Clothing in the Household Sector:
per capita demand of textiles is Rs. 4081.60 in 2016 as compared to Rs. 3836.13 in 2015 and has experienced a growth of 6.40 percent, which is expected to touch Rs.4762.90 by 2018, with a CAGR of 8.53 per cent between 2011-2018. On the other hand, the per capita demand of textile in terms of quantity has increased to 31.85 metres in 2016 as compared to 30.27 metres in 2015 with a growth of 5.23 percent during the period, it is expected to touch 34.58 mtrs. by 2018, with a CAGR of 4.30 per cent between 2011-2018. The change in per capita demand indicates that an average person’s consumption of textile has increased by 1.58 metres during the period, . It is pertinent to mention that while the growth in demand is 6.91percent in the urban area, it is 6.01 percent in the rural area during the same period.
IV. Fibre wise Demand of Textiles:
The aggregate demand of cotton fibre based product is 17.22 Bn metres in 2016 as compared to 16.51 Bn metres in 2015 with a growth of 4.28 percentage, which is expected to touch 19.29 Bn.meters by 2018. The demand for manmade fibre based product is 23.34 Bn metres in 2016 as against 21.60 Bn metres in 2015 with a growth of 08.04 percentage, which is expected to touch 25.46 Bn.metres by 2018. Similarly, the aggregate demand for pure silk and woolen fibre based product is 0.34 and 0.16 Bn. metres respectively in 2016 as against 0.27 and 0.15 Bn metres in 2015, showing a positive growth of 25.18 percent and 8 percent respectively, which is expected to touch 0.37 and 0.20 Bn.metres respectively by 2018. The survey reveals that out of the total aggregate consumption of 41.06 Bn.million metres (Per Capita 31.85 metres) of textiles in the year 2016, Manmade and Blended/ Mixed textiles together have the largest share of 56.83 percent followed by Cotton textiles with 41.94 percent, Pure Silk textiles with 0.84 percent and Woolen textiles with 0.39 percent. Hence, the demand for manmade fibre based products has been growing and contributing significantly to the overall demand in the household sector.
V. Demand of Textiles as per the Sector of Manufacturing:
The Mill/ Powerloom sector has contributed 33.97 Bn metres (82.72%) to the overall demand of textiles in 2016 compared to 31.85 Bn metres in 2015 (82.65%). Similarly, the Knitted sector has contributed 4.94 Bn metres (12.04%) to the total basket in 2016 as against 4.77 Bn metres (12.39%) in 2015. At the same time, the handloom sector contributed 5.24 percentage to the total demand of textiles in the household sector. The aggregate demand for handloom textiles is 2.15 Bn metres in 2016 as compared to 1.91 Bn metres (4.96%) in 2015. The demand of handloom textiles has increased by 12.66 percentage as compared to the previous year. The projected aggregate demand of textiles by sector of manufacturing estimated for 2018 for Mill made/power loom, Knitted/Hosiery and Handloom sector is 37.24 Bn.Metres, 5.56 Bn.Metres and 2.53 Bn.Metres respectively.
VI. Major Varieties demanded by the Household sector:
Some important varieties which are highly demanded in the household sector, belongs to (i) personal clothing and (ii) home textiles. Among the personal clothing’s, products like shirt, trousers, frock, skirt midi, jeans (male and female), sweater, saree, kurta pyjama, leggings constitutes the major varieties in the reference period. Similarly, the inner wears like Banian, underwear, briefs, petticoat, panties, brassiere, are also contributed a major chunk of demand in the personal clothing categories. The report indicates that the market size of personal clothing items is 37.87 Bn metres during 2016 as against 35.52 Bn metres in 2015 and has experienced a growth of 6.60 percent during the reference period.
The demand for the household sector is the major contributor to the overall growth of the sector with 53.39 percentage of share in the total market size. While the export of T&C decreased at 4.66 percentage, the demand in household & non-household sector grew by 2.82 and 1.51 percentage respectively during 2016. It is worth mentioning that the growth in household demand of textiles has brought about additional demand for 2525 Mn.metres of fabrics, which is an indication to the required capacity expansion in the fabrics manufacturing in the country. Similarly, the growing demand for the newly emerged products like legging etc. provides an indication at the change in preference pattern of the consumers in the country during the period. Hence, the many findings in the report may provide authentic data & insights for informed decision making by the businesses, trade & industry, researchers & policy makers etc.