Indian textile industry is one of the biggest in the world and it has a massive base of textiles manufacturing and raw materials. The Indian economy is dependent to a significant extent on the textile trade and manufacturing sector along with the other important industries. India earns almost 27% of its foreign exchange income by exporting clothes and textiles only. This particular sector contributes to around 14% of the industrial production and 3% of the GDP (gross domestic product) of India. The textile industry also contributes approximately 8% of the total excise revenue collected in the country. It also generates 21% of the total employment generated in India.
Role played by the textile industry in Indian economy
Textile industry plays a significant role in the context of the Indian economy. In recent years, the usage of garment manufacturing ERP software has made it even more efficient. In terms of output it is one of the most crucial and biggest sectors in the economy. In fact, this can be said in context of factors such as employment and foreign exchange earnings as well. Following are some statistics to highlight its contribution to Indian economy:
- 20% of industrial production
- 9% of excise collections
- 18% of employment in industrial sector
- almost 20% of the total export earnings of the country
- 4% of the GDP
Almost 35 million people are employed in the sector which makes it the second highest employer in India. The sector also has a direct connection with the rural economy. It also plays a crucial role of important fiber crafts and crops such as the following:
- cotton
- wool
- silk
- handicraft
- hand loom
They employ millions of artisans and farmers in semi-urban and rural areas. It is estimated that one out of every 6000 people in India is directly dependent on the industry. It also helps that India has several factors working in its favor when it comes to the textile sector.
For starters, it has abundant availability of labor and raw materials. It also helps that it is using garment ERP software, a sure sign of progress. When it comes to global cotton trade it is the second biggest player. It also has the biggest cotton acreage in the world – almost nine million hectares are devoted to the activity. It is also the third biggest producer of cotton fiber in the world. In terms of staple fiber production, it ranks fourth in the world – when you think of production of polyester yarn it ranks fourth in the world. The textile industry is labor intensive too and this is why India has an advantage in this regard.
So, as you can see for yourself, the textile industry of India, has a significant presence of the context of the country’s economy as well! In fact, the same can be said of the international textile economy too! Its contribution to the country’s economy is evident in terms of the contribution that it makes to different areas such as industrial production, foreign exchange earnings, and employment generation.
Having reputed clients in Kolkata, Tiruppur, Ludhiana, Ahmedabad, Delhi and Jaipur MunimjiERP is one of the best Garment/Textile ERP Software Providers in India..
