Understanding of Fashion

Industry UNIT 4 GROWTH OF INDIAN FASHION

INDUSTRY

Structure
4.0 Introduction
4.1 Learning Outcome
4.2 Indian Fashion Industry: An Overview
4.3 Growth of Textile and Apparel Sector
4.3.1 Production and Export of Textile and Clothing
4.3.2 Production, Consumption, Export and Import of Cotton
4.3.3 Silk Production and Employability
4.3.4 Wool and Woollen Textiles Industry of India
4.3.5 Lather and Footwear Industry of India
4.4 Capacity Building and Research and Development
4.5 Growth of Fashion Industry: Future Perspectives
4.6 Let Us Sum Up
4.7 Check Your Progress: The Key
4.8 References and Further Readings

4.0 INTRODUCTION
In the previous Unit, we discussed about the Growth of global fashion industry.
We will discuss about overview of Indian fashion industry in this unit. You recall
our discussion about history of Indian fashion in course Block 1 of Course 1,
where we discussed about traditional costumes of India and evolution of Indian
Fashion during 20th and 21st Century. In this particular unit, we will discuss
about an overview of fashion industry in India. The unit further highlights about
the trend of growth of textile and apparel sector including textile and clothing,
cotton, silk, wool and woollen textiles, lather and footwear industry of India.
The unit further discussed about the capacity building and research and
development activities in fashion industry and future of fashion industry in India.

4.1 LEARNING OUTCOME

After going through this unit, you should be able to:
describe the evolution of Indian fashion industry;
explain the growth of textile and apparel industry of India;
describe the production of cotton, silk, woollen and woollen textile, lather
and footwear industry of India;
outline the capacity building and research and development activities in
textile and apparel sector; and
discuss the future prospectus of fashion industry in India

54
 Growth of Indian Fashion
4.2 INDIAN FASHION INDUSTRY: AN OVERVIEW Industry

The fashion industry in India is having thousands of year history. The knowledge
as the fashion garments has been emerged in India since ancient history. As we
discussed in Block 1 of Course 1 that at the time of Indus valley civilization
(3000-1500), fashion was observed by the kind of cloths wore by men and women
during this period. It has been observed from the available sculptures in the
country that men wore loincloths and women were bare to waist. The Vedic
literature states that refined fabricating techniques of apparel were existing during
this period. The good quality of cotton clothes in India has already mentioned by
the Greek historian, Herodotus during 5th century BC. Rig Veda also stated the
dyed and embroidered garments and fabricated technique of apparels during the
Vedic age in the 11th century B.C. During British rule, British industrial cloth in
India was promoted. To reduce the dependency of Indian people on the British
goods, the Khadi, a hand-woven material was promoted (Bhattacharjee, 2104).

The production of Indian fashion industry has gone through many transformations
since independence. It has transformed from wide range of clothing production
i.e. dressing for wedding ceremonies or party wear to casual wear. The Indian
traditional techniques of embroidery have been recognised by global fashion
industry. Its growth depends on production of textile and apparel industry which
includes cotton, jute, silk, wool and man-made fibre. The era of branded products
was emerged in India during 21st century. Branded shirts were more demanded
products in 1950. Since then, more brands entered into Indian fashion industry.
Branded dresses contributed significantly to the growth of Indian fashion industry.
In addition to branded products, globalization process also played a crucial role
in the growth of Indian fashion industry.

The fashion industry in India got importance in 1980, but its growth increased
by the end of 1990s. The participation of Indian women in the Fashion Industry
has been increased since 1980 onwards. This industry helped women
empowerment in the country. The production of western style cloths and fashion
products also got momentum during same year because of more demands of
Indian customer for this type of product due to changing in fashion style. Various
important factors were responsible for the huge growth of Indian fashion industry
like handwoven fabrics and craftsman, western styles of clothing, and availability
of affordable clothing custom made tailors. On the other hand, the fashion
designers were able to get corporate financial support for their fashion outlets.
Private sector played positive role for further boost to the expansion of this
industry in the country.

After settle in the domestic market, the fashion industry started to expand its
business in other part of the world before 2005. Fashions designer started to set
up their enterprises in small towns during this period. Industry earned revenues
of about two billion Indian rupees in same year. Government of India’s policies
was supporting to this industry. It resulted the increase employment and income
opportunities in rural and semi-urban areas. The policy also helped to export of
cotton and apparel. The focus of various Five-Year Plans was also giving priorities
to rural industrialization which help to rise fashion industry in the country (Khaire,
2011). The Government relaxed rule on regulatory controls and Foreign
55
Understanding of Fashion Development of India (FDI) which helped the growth of the fashion retail industry.
Industry
The apparel and textiles industry are India’s largest selling sectors of the retailing
sector (Pani et al, 2012).

At present, Indian fashion industry is largely representing form unorganized sector.

But it can compete with global fashion industry despite of global cultural
differences and consumer’s choice changing frequently. According to Mckinsey
(2019) report, about 45 million people are employed directly and 60 million
indirectly in this industry. About 41 percent of global procurement officers are
expected to increase their sourcing share form India. It is because of India’s
average cost is significantly lower than China. In addition, there is also the
availability of large amount of raw materials like cotton, wool and silk. Let us
study the growth of Textile and Apparel sector in India in the next section.

4.3 GROWTH OF APPAREL AND TEXTILE

SECTOR
The textile and apparel industry of India can be divided into two parts; (i) yarn
and fibre; and (ii)processed fabrics and apparel. Indian apparel has also got
recognition in global fashion market. The Indian textile industry is a largely raw
material base depends mostly on agriculture sector. It is the 2nd largest
manufacturer, producer and exporter in the world. It contributes 7 percent of
industry output in value terms, 2 percent of India’s GDP and 15 per cent of the
country’s export earnings. It is one of the largest sources of employment generation
in the country. It provides employment opportunities to large number of rural
women. The strength of India textile industry depends on its hand-woven sector
as well as in the capital-intensive mill sector (2nd largest in the world). The other
sectors like handloom, small scale power-looms units and handicrafts called as
traditional sectors also contributing in the Indian economy significantly. These
sectors are creating more employment opportunities for rural and semi-urban
area. They also contribute more than 75 percent of total textile production in the
country. The market size, export and cloth production of textile and apparel
industry in India have been presented in Figure 4.1.
160 150
137
140

120

100
65 64
80

60 37 39

40

20
Industry Size (US $ billion) Export (US$ billion) Cloth Production (billion sqm.)

2016' 2017'

Fig. 4.1: Textile and Apprel Industry in India

Source: Data compiled from IBEF (2019). Textile and Apparel. Retrieved from www.ibef.org

56
 Growth of Indian Fashion
Check Your Progress 1 Industry
Note: a) Space is given below for writing your answer
b) Compare your answer given at the end of the Unit
1) Discuss the evolution of fashion industry before independence in India.
Answer in about 10 lines.
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Figure:4.2 Production o Yarn, Fabric, Cotton and Blend since 2013-14 onwards
Source: Source: Data compiled from Annual report of various years, Ministry of Textile,
Government of India. Retrieved from http://texmin.nic.in/documents/annual-report Note: p=
provisional 57
Understanding of Fashion The National Textile Corporation (NTC) Ltd is engaged in production of yarn
Industry
and fabric. It has been operated through 23 mills in the country located in the
different parts of the country. It is also having 8.03 lac spindles and 408 looms
producing large amount of yarn and fabric since 2013-14 onwards (Figure 4.2).

4.3.1 Production and Export of Textile and Clothing

The Indian textile and apparel industry are contributing significantly in the Indian
economy. The It is the second largest manufacturer and exporter in the world,
after China. The share of textile and clothing (T&C) in India’s total exports
stands at a significant contribution from 2013-14 to 2018-19. The Readymade
Garment’s share s in total textile exports also contributed significantly. It was
about 40 percent on an average during this period. India is the worlds’ second -
largest exporter of textiles and apparel in the world. India’s share in global trade
of textiles and apparels was about 5 percent in 2017. In 2019, total textile and
clothing exports was US$36.62 billion. Ready-made garments exports were
US$15.27 billion during the same year. During April- September 2019, fibre
export was US 513 million and yarn, fabrics and made-ups experts was about
US7.13 billion. The major export markets for Indian textile and apparel were
USA, European Union, Some parts of Asia, and Middle East. It has been predicted
that India’s apparel exports are expected to increase significantly. Total exports
of textile and apparel will be about US$82 billion in 2021 at the CAGR of 12.06
percent (IBEF, 2019). The Indian fashion apparel industry is contributing
significantly in terms of revenue, trade, investment and creating employment
opportunities (Figure 4.2). Apparel industry has different variety for distribution
through existing retail network. The share of textile and clothing in India’s total
export is presented in the following graph (Figure 4.3).

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27

26

25

24

23
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Fig. 4.3: Trend of Employment in Organised Textiles and Wearing Apparel Sector
(In Lakh)
Source: Data compiled from, Ministry of Textile, Government of India web page http://
texmin.nic.in

Government of India has initiated various schemes for the promotion of textile
and apparel products across the globe. Government of India initiated various
schemes for the promotion of textile and apparel products across the globe. The
Scheme for Integrated Textile Parks initiated during the previous Five-Year Plans.
The objective of the scheme is to provide the textile industry quality infrastructure.
At present, there are also public sector undertaking contributing in the growth
of fashion industry. The Textile Commissioner acts as the principal technical
advisor to the Ministry of Textile, Government of India and its head quarter is
58 located in Mumbai. The main function of this office is to carry out the
technoeconomic surveys and advises the government on the developmental Growth of Indian Fashion
Industry
activities of the textiles and clothing industry. The textile committee was set up
under the Textile Committee Act, 1963 (41 of 1963) and started functioning
from 22nd August, 1964 onwards. The main objective of this committee is to
ensure the quality of textiles and machinery for consumption and export. The
Scheme for Incubation in Apparel Manufacturing was launched on pilot basis in
2014. The major focus of this Scheme is to promote entrepreneurs in apparel
manufacturing. Under this scheme, it has been provided integrated workspace
with ecosystem.

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Textile and Clothing

Th
e li
Readymade
Garments
Figure 4.4: Share of textile and clothing in India’s total exports (In %)
Source: At Graph 4.1.

The Apparel Export Promotion Council (AEPC) is the apex body for this purpose
which is giving assistance to industry for exporting the products. It was established
in India in 1978 to provide assistance to Indian exporters, importer and global
buyer for buying Indian garments. The major focus of the APEC is to promote,
advance, increase, develop export of all types of readymade garments, excluding,
woollen knitwear and garments of lather, jute and hemp; and cooperate with
governments and other organisation in the country for promotion of exports of
ready-made garments. Government of India allowed 100 percent FDI in the Indian
textile sector. It is projected that Indian apparel market will be about US $ 59.3
billion in 2022 compare to the UK (US $ 65 billion) and Germany (US$63.1
billion).

4.3.2 Production, Consumption, Export and Import of Cotton

Cotton is an important raw material for Indian’s textile industry. It is the bread
and butter to millions of Indian farmers who works in this industry. They are
involved right from the beginning to end i.e. the stage of processing to trading
of Indian textile and apparel industry. It is being cultivated in most of the areas
of Punjab, Haryana, Rajasthan, Madhya Pradesh, Gujrat, Maharashtra, Orissa,
Telangana, Andhra Pradesh and Karnataka and Tamil Nadu. However, it has also
being cultivated in small areas of Uttar Pradesh, West Bengal and Tripura.
Production of cotton has improved significantly since last couple of years.
India is the largest producer and 2nd largest exporter of cotton in the World as
well as also the largest consumption of cotton. At present, India exports large
quantity of cotton to Bangladesh, China, Vietnam, Pakistan, Indonesia, Taiwan
59
Understanding of Fashion and Thailand etc. Among all countries, Bangladesh is the largest importer of
Industry
Indian cotton. Cotton contributes about 25 percent of the total global fiber
production. Its consumption in the Indian textile industry is about 59 percent.
India produced larger cotton in the world with production of about 370 lakh
bales in 2017-18 and 2nd largest exporter of cotton.

It has contributed significantly in sustaining the livelihoods of about 6 million

farmers and 40 to 50 million people.

Cotton Corporation of India (CCI), a public sector undertaking body under the
Ministry of Textiles, is the nodal agency of GOI for undertaking Minimum Support
Price (MSP) operations. The details of production (Quantitate of output produced
at a particular time), consumption, export and import of cotton has been presented
in table 4.1. India has largest land area for cotton cultivation with 124.33 lakh
hectares (36%) of the total world land of 341.37 lakh hectares. But its’ productivity
(The ratio of output to input) is poor in comparison to USA and China. The trend
of productivity of cotton in Inia is present in Table 4.2.
Table 4.1: Production, Consumption, Export and Import of Cotton in
India (In Lakh bales of 170kg Each)
Year Production Consumption Export Import
2010-11 339 259.61 76.50 2.38
2011-12 367 375.28 129.57 7.51
2012-13 370 283.16 101.43 14.59
2013-14 398 299.55 116.96 11.51
2014-15 386 309.44 57.72 14.39
2015-16 332 315.28 69.07 22.29
2016-17 345 310.41 58.21 30.94
2017-18 370 314.61 67.83 15.80
2018-19 (p) 261 317.00 65.00 15.00
Source: Source: Data compiled from Annual reports of various years, Ministry of Textile,
Government of India. Retrieved from. Note: p= provisional.
Table 4.2: Trend of Productivity and yield of cotton in India from 2010-11
onwards (In Kg/Hectares).
Year Acreage (Area of Land) Yield (Produce)
2010-11 112.35 513
2011-12 121.78 512
2012-13 119.78 525
2013-14 119.60 566
2014-15 128.46 511
2015-16 122.92 459
2016-17 108.26 542
2017-18 124.29 506
2018-19(p) 122.38 501
Source: As Table 4.1
60
The Cotton Corporation of India (CCI) Growth of Indian Fashion
Industry
The CCI was set up in 1970 by the Government of India as a public sector
organisation for cotton marketing. It has been operating in competition with the
private cotton traders and other buyers. The objectives of the Corporation are (a)
to undertake price support operations; and (b) commercial operation at own risk.
Its market share was fluctuating from 5 percent to 8 percent since its’ inception.
However, its share gone up up to 31 percent in some years. The role and functions
of the Corporation can be reviewed as per need. It has been given task for
undertaking Minimum Support Price (MSP) operations, at the time kapas prices
of seed cotton (kapas) decrease than MSP level for procuring the entire quantity
of kapas offered for sale by the farmers in different markets at MSP rates. Every
year, Government of India fixes the MSP on the basis of groups of cotton i.e.
medium long staple and long staple cotton. The cotton quality can be measured
in terms of grade, staple and micronaire (10). Quality grading depends on color,
trash, content and smoothness of the sample cotton. Staple is the average length
of the individual fibres and micronnaire is a measure of fiber quality and its
maturity (pdfs.semanticscholar.org). Ministry of Agriculture, Government of India
(GOI) had fixed MSPs fair average quality (FAQ) grade at Rs. 5160/- per quintal
for medium staple and Rs. 5450/-per quintal for long cotton. The MSP fixed
from 2012-13 onwards is presented in Table 4.3.

Table 4.3: The MSP fixed by the Ministry of Agriculture, GOI from 2012-
13 onwards (In Rs.)
Year Medium staple (length 24.5mm Long staple (length 29.5 to
to 25.5mm with micronnaire 30.mm with micronnaire
value 4.3 to 5.1) value 3.5 to 4.3)
2012-13 3600 3900
2013-14 3700 4000
2014-15 3750 4050
2015-16 3800 4100
2016-17 3860 4160
2017-18 4020 4320
2018-19 5150 5450
Source: As Table 4.1

4.3.3 Silk Production & Employability

India is the second largest producer of silk (31,906 MTs) and as well as consumer
in the world after China in 2017-18. Silk industry creating livelihood opportunity
for millions of people through creating employment in this industry. Policy makers
recognized this industry for socio-economic development of Indian people. It
has trade history since 15th century onwards. India is having traditional domestic
market of silk garments industry. India is producing five commercial varieties of
silk like Mulberry, Tropical Tasar, Oak Tasar, Muga and Eri. Sericulture industry
of India potential for creating employment in the country. Like cotton, India is
the 2nd largest producer (31,906 MT) of silk in the world after China in 2018-19
61
Understanding of Fashion (Table 4.4). At the same time, India is also consuming the largest quantity of silk
Industry
in the world. It is the only country, which produce different varieties of silk.
These are: Mulberry (69.16%), Tropical Tasar (9.37%), Oak Tasar, Muga (0.60%)
and Eri (20.87%) in 2017-18. Sericulture industry of India has the high
employment opportunities with low capital requirement.

Table 4.4: Trend of silk production (In Meter) and employment (In Lakh)
in India
Year Mulberry Tasar Muga Eri Total Employment
2012-13 18715 1729 119 3116 23679 76.53
2013-14 19476 2619 148 4237 26480 78.5
2014-15 21390 2434 158 4726 28708 80.3
2015-16 20478 3289 166 5060 28993 82.5
2016-17 21273 3268 170 5637 30348 85.1
2017-18 22066 2988 192 6661 31907 86.0
Source: As Table 4.1

The Government of India established statutory body ‘the Central Silk Board
(CSB) under the Ministry of Textiles in 1948. The major responsibility of the
Board is developing silk industry, formulation of policies governing import and
export of silk and research and development activities. The Central Sector Scheme
is an integrated scheme for development of silk industry in India. It has four
components as mentioned below:
1) Research and Development, Training, and IT initiatives
2) Seed Organization
3) Coordination and Market Development
4) Quality Certification Systems, Export, Brand Promotion & Technology
upgradation. The role of the seed production units is to keep of these four
components for seed multiplication network for maintaining the quality.
The state seed production units facilitate to increase in the basic seed
production in State’s units. About eight million people are employed in

170000
180000
158400
160000 142000
146000
140000 120000

120000

100000
28708 28523 30348 31906 35261
80000

60000
2014' 2015' 2016' 2017' 2018'

Indi Chin
a a
Fig. 4.5: Silk production in India and China (In Metric Tonnes)
62 Source: Data compiled from (http://inserco.org/en/statstics)
 India in the silk industry (http.insevice.org). The silk production in India Growth of Indian Fashion
Industry
and China from last five years is presented in the following table
(Figure 4.3.).
The export of silk goods decreased since last three years. The earning from export
of silk goods was decreased from 2495.98 crore in 2015-16 to 1649.48 crore in
2017-18. Most of the silk goods were being exported to Europe and USA. But,
the demand of silk goods started to increase in new market like Thailand,
Nigeraia, UAE etc (http://ministryoftextiles.gov.in/ sites/default/files/note-on-
sericulture-English-Jan2019.pdf). This trend is giving hope for the growth of
silk industry in future.

4.3.4 Wool and Woollen Textiles Industry of India

Woollen textiles and clothing industry of India is smaller industry comparted to
mad made fibre- based textile and clothing industry. But it is contributing to
Indian rural economy significantly. Government of India initiated various schemes
from time to time for the growth of woollen industry in the country. For support
to this industry, Government of India constituted Central Wool Development
Board (CWDB) in 1987 under the control of Ministry of Textile. It is playing a
mediator role among different sectors of the wool industry in India.

India rank 9th position for the production of wool in the world with share of two
percent of the total production of wool. In India, the production of wool is in
states of Punjab, UP, Rajasthan, Maharashtra and Gujarat. About 35 percent of
the total production of wool in India is from Punjab followed by Maharashtra
and Rajasthan (https://www.ibef.org/exports/wool-industry-india.aspx). India is
having about 65 million sheep (3rd largest sheep in number in the world). 85
percent of them is carpet grade wool, 10 percent for rough Kambales etc and 5
percent apparel grade. But it is not adequate because small portion of fibre is
obtained from Pashmina goats and Angora rabbits. The trend of production and
export Indian wool has been presented in Table 4.5. The woollen industry is
divided into organised (kintwers, woven garments, machined made carpets etc.)
and decentralize sector (hosiery and knitting, hand knotted carpets and woollen
handloom sector). It has the potential to create more employment opportunities.
The available data from Ministry of Textile, Government of India reported that
about 12 lakh people are employed in organised wool sector and 20 lakh people
are working in the sheep rearing and farming sector. India also exports of different
woollen products like yarn, fabrics, tops, ready- made garments and carpets.
Table 4.4 show that the total export of woollen items increased from Rs. 6431.09
crore in 2011-12 to 11484 crore.in 2017-18. There are good opportunities for
export growth. Primary sectors which can look forward for export growth are
textiles, woven clothing, knitwear’s and carpets. The growth rate of export of
woollen items was fluctuating from 2011- 12 to 2017-18 (Figure 4.4).

63
Understanding of Fashion Table 4.5: Trend of production and export of wool from 2011-12 onwards
Industry
Year Wool Export
Production Wollen, Ready Carpets Total
(In Million Yarn, Made (Excluding
Kg) Fabrics Garments Silk)
Made Ups Handmade
2011-12 43.00 725.20 1654.69 4051.21 6431.10
2012-13 44.40 659.03 1617.43 5340.77 7617.23
2013-14 46.05 684.70 1888.60 6225.83 8799.13
2014-15 47.90 1234.61 1901.76 8301.56 11437.93
2015-16 48.14 1284.91 1724.86 9241.75 12431.52
2016-17 43.60 1189.24 1443.26 9956.63 12589.13
2017-18 43.50 1197.86 1089.97 9196.99 11484.82
Source: As Table 4.1 and http://ministryoftextiles.gov.in/sites/default/files/Textiles_Sector_
WoolandWoollen_1.pdf

35.0
0 29.99
30.0
0 18.44

25.0 15.52
0
8.69
20.0
0 1.27

15.0
0.00
0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Fig. 4.6: Growth rate (%) of Export of Woollen Products from India

4.3.5 Lather and Footwear Industry of India

The Indian Footwear sector is indicating high growth prospects at national and
international market. It is because of low productivity cost, availability of large
quantity of raw material, evolving retail sector, increase individual’s disposable
income etc. In India, unorganised sector is dominating in this industry. However,
rising individual’s income is helping to changing lifestyle of every Indian. India
is also being known for its traditional footwear producer.
Lather is one of the most demanded commodities across the globe. The growth
of this commodity is increasing particularly in fashion industry. It has been
considered very important item in the India’s export earning. Hence, it has very
important place in the Indian economy. The share of Indian leather industry is
about 13 percent of the worlds leather production. It has been transforming form
raw material supplier to value-added product exporter to different countries in
the world. According to Council for Leather export report;
the export of footwear, leather and leather production from India was about
US$5.69 billion in 2018-19. India was the second largest exporter of leather
64 garments and third largest exporters of Saddlery and Harness in the world.
 India is the second largest global exporter, after Italy with a global market Growth of Indian Fashion
Industry
share about 17 percent.
the leather industry is an employment intensive industry, about 4.42 million
people employed in the industry.
in, 2017, India was the second largest producer in the world after China,
about 2.41 billion pairs were produced in this year.
Trend of item-wise India’s export of leather and leather products has shown
significantly rise in growth rate of export since last five years.

Non-Leather Footwear 29739

330
156 7
Saddlery & Harness 14
9
7 13164634
Leather Goods
46581 1371045
9 55
33139 3
Footwear 5
84
Components 2194
Leather 5
14
Footwear 8
722 87
4 104
Finished Leather 6
0 500 1000 1500 2000 2500

2018-19 2017-18 2016-17 2015-16 2014-15

Fig. 4.7: India's Export of leather and leather products since last five years (in US$ Million)
Source: Data compiled form the Council for leather exports, (Ministry of Commerce and Industry,
Govt. of India). Retrieved from http://leatherindia.org/

Check Your Progress 2

Note: a) Space is given below for writing your answer
b) Compare your answer given at the end of the Unit
1) Describe the growth textile and apparel sector of Indian fashion industry.
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2) What is the contribution of footwear industry in the growth of Indian
fashion industry?
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65
Understanding of Fashion The textile and apparel industry of India can be divided into two parts; (i) yarn
Industry
and fibre; and (ii)processed fabrics and apparel. Indian apparel has also got
recognition in global fashion market. The Indian textile industry is a largely raw
material base depends mostly on agriculture sector. It is the 2nd largest
manufacturer, producer and exporter in the world. It contributes 7 percent of
industry output in value terms, 2 percent of India’s GDP and 15 per cent of the
country’s export earnings. It is one of the largest sources of employment generation
in the country. It provides employment opportunities to large number of rural
women. The strength of India textile industry depends on its hand-woven sector
as well as in the capital-intensive mill sector (2nd largest in the world). The other
sectors like handloom, small scale power-looms units and handicrafts called as
traditional sectors also contributing in the Indian economy significantly. These
sectors are creating more employment opportunities for rural and semi- urban
area. They also contribute more than 75 percent of total textile production in the
country. The market size, export and cloth production of textile and apparel
industry in India have been presented in Figure 4.1.

4.4 CAPCITY BUIDLING AND RESEARCH AND

DEVELOPMENT
To improve knowledge and skills in various aspects of fashion industry, public
and private sectors has taken various steps for the capacity building and research
and development programmes. In this regard, various public and private
institutions/organisation are set up. Some of them are mentioned below.

a) The government of India established National Institute of Fashion

Technology under the Ministry of Textiles in 1998 with mandate to help
India’s apparel expert industry. The fast- increasing growth in the clothing
sector, on the job as well fresh skill trained manpower is vital need of the
fashion industry. To meet this challenges, certificate, diploma and degree
level programmes are being offered from NIFT. Various efforts are being
made to update faculty knowledge of the industry at real life situation for
exposes the latest practices being adopted in the industry so that they can
disseminated in the class room teaching. In addition to this, Government of
India initiated various Research and Development projects in collaboration
with industry for growth of fashion industry in the country. Various national
bodies and industry association are being associated with R&D activities.
b) Sardar Vallabhbhai Patel International School of Textiles & Management
(SVPISTM) was set-up on 24th November, 2002 at Coimbatore, Tamilnadu;
c) The Cotton Advisory Board (CAB) is also helping for the growth of the
fashion industry and trade. It provides an opportunity for liaison among the
cotton textile mill industry.
d) Exports Promotion Councils (EPCs) representing textiles and apparel sector
i.e. readymade garments, cotton and silk and others. These are (i) Apparel
Export Promotion Council, (ii) The Cotton Textile Export Promotion
Council, (iii) The Synthetic & Rayon Textiles Export Promotion Council;
and (iv) Indian Silk Export Promotion Council.

66
Research and development (R&D) activities are important tool for the growth of Growth of Indian Fashion
Industry
Indian textile industry. In addition to above mentioned steps, government is
investing in R&D in the textile machinery. Existing research literature on the
subject reveals that continue technology upgradation, suitable policy framework,
innovation in designing, enhancing production capacities and quality assurance
were considered important factors by the stakeholders for the growth of textile
and apparel industry in India. To enhance high growth in Indian fashion industry,
Ministry of Textiles, Government of India initiated various schemes for the R&D
activities. For example, it has been providing financial support to those who are
associated in R&D projects. For this, Ministry engaged eight Textile Research
Associations (TRA). These are: (i) Ahmedabad Textile Industry Research
Association (ATURA); (ii) Bombay Textile
Research Association (BTRA), (iii) South Indian Textile Research Association
(SITRA); (iv) Northern India Textile Research Association (NITRA); (v) Man-
Made Textile Research Associations (MANTRA);
(vi) Synthetic and Art Silk Mills Research Association (SASMIRA); and (vii)
Wool Research Association (WRA). In addition to these TRAs, University and
Industry Association, IITs, AICTE, DST/DSIR recognised engineering colleges/
research centres can also submit research project proposals. For details, you can
visit at http://texmin.nic.in/.

4.5 GROWTH OF FASHION INDUSTRY: FUTURE

PERSPECITVES
The future of the Indian textile industry looks very encouraging. Because, it will
be larger number of domestic consumption and also more export demand in the
global market. As mentioned in the previous sections that with rise of disposable
income of Indian, the demand for branded products will be higher than before.
Many international players have already been entered in the Indian market not
only big malls in metro cities abut also retail outlet in small towns in the country.
Government of India making all its efforts for the rise of future growth of Indian
fashion industry. It has been reported in various documents that employment

35000
28601
26711
24048
25000

20000 20582
16553
15000 11837
9242
10000 7076
5000

2017' 2018' 2019' 2020' 2021' 2022' 2023' 2024'

Fig. 4.8: Revenue projection from fashion industry of India from 2017 onwards
(In US $ Million)
Source: Data compiled from https://www.statista.com/outlook/244/119/fashion/india#
market-revenue 67
Understanding of Fashion opportunities increased from about 8 million in 2014-15 to 45 million in 2018-
Industry
19. Global fashion companies like Zodiac, Zara and Klein etc are attracting Indian
consumer through fashion products. Indian companies like Raymond, Reliance
Retail and Future Group has also launching their ow fashion products. It has
been predicted that revenue from this industry will be higher from US $ 7076
Million in 2017 to US $ Million 28601 Million in 2024 as presented in following
Figure 4.6.

Indian fashion industry is also facing some issues and challenges which may
affect future’s growth. India is having regional variation of climates and
consumer’s tastes. Hence, the demand for fashionable woolen demand will be
specific region. It may affect the demand for fashion products in specific
geographical areas and the overall growth of the Indian fashion industry. The
low quality of India’s Infrastructure in comparison of other Asian countries like
Bangladesh, Vietnam, China is another challenge. India’s in-equality of income
distribution may also impact on the future growth of fashion industry. Fashion
retailers are the heterogeneity of the market. High rent shops, tax structure are
obstacles for the growth or fashion retail industry in the country.

Check Your Progress 3

Note: a) Space is given below for writing your answer
b) Compare your answer given at the end of the Unit
1) What is the future of Indian fashion industry?
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4.6 LET US SUM UP

At the beginning of this Unit, we focused your attention on the genesis of Indian
fashion industry. This was followed by a consideration of the growth of Indian
textile and apparel sector. In this section, we discussed about the growth of textile
and apparel sector, production and export of textile and clothing, production,
consumption, export and import of cotton, silk production and employability,
wool and woollen textile industry of India, and lather and footwear industry of
India. We have noted that various efforts have been made by the public and
private sector for capacity building and research and development programmes
which helped the growth of fashion industry in India. You have seen, at the end
of the Unit, future of fashion industry and projection of revenue from this industry
has been discussed. Various issued and challenges like the low quality of India’s
Infrastructure in comparison of other Asian countries, in-equality of income
distribution, and heterogeneity of the market, and tax structure are obstacles for
the growth or fashion industry in the country.
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 Growth of Indian Fashion
4.7 CHECK YOUR PROGRESS: THE KEY Industry

1) The available literature reveals that the fashion industry of India before
independent was observed at the time before Indus valley civilization (3000-
1500). It was observed by the kind of cloths wore by men and women
during this period. It has been observed from the available sculptures in the
country that men wore loincloths and women were bare to waist. The fashion
industry in India evolved from the Ancient period. The good quality of
cotton clothes in India has already mentioned by the Greek historian,
Herodotus during 5th century BC. Rig Veda also stated the dyed and
embroidered garments and fabricated technique of apparels during the Vedic
age in the 11th century B.C. During British rule, British industrial cloth in
India was promoted. The Khadi, a hand-woven material was also
mushrooming this period.
2) Reference to Section 4.4. and 4.4.5.
3) Reference to Section 4.6.

4.8 REFERENCES AND FUTURE READINGS

www.iitd.edu.in/evalution-fashion-indsutry/india http://texmin.nic.in/documents/
annual-report www.iitd.edu.in/evalution-fashion-indsutry/india. https://
www.iiad.edu.in/stories/evolution-fashion-industry-india/ http://leatherindia.org/
https://shodhganga.inflibnet.ac.in/bitstream/10603/33928/2/chapter1.pdf http://
ministryoftextiles.gov.in/sites/default/files/note-on-sericulture-English-
Jan2019.pdf https://www.statista.com/outlook/244/119/fashion/india#market-
revenue
Bhattacharjee, S. (2104). Evolution of Fashion Industry in India. Retrieved from
https://www.iiad.edu.in/stories/evolution-fashion-industry-india/, 11 February,
2019.
Garg.Yuvraj.(2017). Environmental Friendly clothing: an emerging trend in the
Indian fashion industry.
Journal of Management value and Ethics. 7 (4).
GOI (2019). Annual Reports of various years. Ministry of Textiles, Government
of India. Retrieved from http://texmin.nic.in/documents/annual-report
IBEF (2019). Textile and Apparel. Retrieved from
https://www.ibef.org/download/textiles-and-apparel-mar-2019.pdf
IBEF (2019). Apparel and Garment Industry and Exports. Retrieved from https:/
/www.ibef.org/exports/apparel-industry-india.aspx., 21 February, 2019
Khaire, M. (2011). The Indian fashion industry and traditional Indian crafts. The
Business History Review, 85 (2),pp.345-366.
Kumari, A. (2019). Digital marketing in Indian fashion industry. International
Journal of Innovative Science and Research Technology, 4(5).
Mckinsey, (2019). The State of Fashion 2019. Rederived from https:// 69
Understanding of Fashion www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/
Industry
The%20influ ence%20of%20woke%20consumers%20on%20fashion/The-State-
of-Fashion-2019.ashx, 29th January, 2019.
Pani, A. and Sharma, M. (2012). Emerging trends in fashion marketing: a case
study of apparel retailing in India. International Journal of Business and
Management tomorrow, 2 (10).
Turker, D. and Altuntas, C. (2014). Sustainable supply chain management in the
fast fashion industry.
An Analysis of corporate report. European Management Journal, 32 (5).
pp.837.849

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