The economic development of India is greatly dependent on export earning of Textile Industry. Textiles represent nearly 30% of the country’s total exports. Providing direct employment to over 45 million persons in the mill, powerloom and handloom sectors making it the biggest employer in the country after the agricultural sector. India is the world’s second-largest producer of textiles after China. It is also the world’s third-largest producer of cotton after China and the USA.
India’s total exports of textiles and apparel are expected to grow at a CAGR of 12.03% to reach $82 billion by 2021. At present, a third of India’s textile production is exported. India is the world’s second-largest exporter of textiles and apparel, and the textile industry contributes significantly to the country’s economy, making up 7% of industry output, 2% of the national GDP, and 15% of the country’s total exports earnings. The US and the European Union are the two largest markets for Indian textile exporters. With all the export promotion & development planning it is expected to grow to US$2,600 billion by 2025.
However, the pandemic of COVID- 19 has affected all over the world economy. Due to Covid-19, The Indian Textile Industry fell as the yarn and ready-made garments exports fell by 90% during April as per the report.
Till the quarter of March, the export of ready-made garments declined by 16% and by April further to 91%. Whereas yarn exports fell about 30% during the quarter of March and further to 80-90% in April. China accounts for a third of India’s yarn export and Bangladesh which accounts for a fifth of India’s yarn export. Under the impact of Covid-19 garment, units were shuttered in these countries so, their imports declined, as a result, the Indian export of yarn and the ready-made garment fell according to the Crisil Research report.
To Survive pandemic “About 15-20% of the over 8,000 apparel exporters in the country have resumed operation with 25-30% of their workforce,” said Narendra Goenka, managing director of Textile Export Industries and vice-chairman of Apparel Export Promotion Council (AEPC).
The export demand is likely to fall further as the largest exporter, the US, is also facing anti-racism protests along with the pandemic. The US and Europe account for 60% of exports from India.
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