Textile and apparel industry to grow to $220 billion by 2020

Gautam Hari Singhania, CMD, Raymond, at the launch of ColorPlus Woman in New Delhi. File Photo.  

India's textile & apparel (T&A) industry (domestic and exports) is expected to grow from Rs.3.27 lakh crore ($70 billion) to Rs.10.32 lakh crore ($220 billion) by 2020, according to a research report by Technopak Advisors, a leading management consultancy.

The report says that the domestic T&A market size in 2009 was Rs.2.18 lakh crore ($4 billion) and is expected to grow at a compounded annual growth rate (CAGR) of 11 per cent to Rs.6.56 lakh crore ($140 billion) by 2020. The domestic apparel retail market was worth Rs.1.54 lakh crore ($33 billion) in 2009 and will touch Rs.4.70 lakh crore by 2020.

Even though, at present, the menswear has a majority share in the apparel market (43 per cent) and is growing at 9 per cent, women's wear is growing at a higher rate of 12 per cent and is expected to reach 43 per cent share in 2020 from the current 37 per cent of the market. Apart from this, kids' wear is growing rapidly with higher growth in girl's wear (11 per cent) than boys wear (10 per cent). The report said that the home textile market is expected to grow 9 per cent CAGR from Rs.15,570 crore in 2009 to Rs.40,000 crore by 2020.

The global textile and apparel trade is recovering after the recession of 2008-09, and is expected to reach $1 trillion by 2020 from $510 billion now. The growth in trade is driven by increased outsourcing of western / developed countries towards lower cost countries in Asia.

The report said that India has the potential to increase its export share in world trade from the current 4.5 per cent to 8 per cent to reach $80 billion by 2020. The high growth of Indian exports is possible due to increased sourcing shift from developed countries to Asia and India's strengths as a suitable alternative to China for global buyers. Investments to the tune of Rs.3.20 lakh crore ($68 billion) across the textile supply chain will be required by 2020 to tap the potential market created due to the growth of the industry and the investment required in the garment sector by 2020 is $14 billion and for processing $19 billion.

Speaking at the inaugural session of the second Technopak leadership forum last week, Arvind Singhal, Chairman, Technopak Advisors, highlighted the growth drivers for the industry, “growth within the industry will be driven by innovation across product, design, and brand, channel and also business processes.

“Further, it is important for the industry to identify and create new mega clusters — Madurai, Mundra, Ambala and Mangalore — having tremendous potential for manufacturing.”

There was need for collaborative and aggressive entrepreneurship, increasing scale through mergers and acquisitions, divestments and bringing forth positive outlook for the industry to attract the best managerial and operational talent to provide further impetus for growth within the industry.

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Printable version | May 11, 2021 3:21:22 AM |

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