<h1 class="ql-align-center">Indian Textile Industry</h1> <h2>About:</h2> <ul><li>Textiles &amp; garments industry&nbsp;is a&nbsp;labour-intensive sector&nbsp;that employs&nbsp;45 mn people&nbsp;in India and is&nbsp;second only to the agriculture sector&nbsp;in terms of employment.</li></ul> <ul><li>It is&nbsp;one of the oldest industries in the Indian economy&nbsp;and is a storehouse and carrier of traditional skills, heritage, and culture.</li></ul> <ul><li>It can be divided into&nbsp;two segments:</li></ul> <ul><li class="ql-indent-1">The&nbsp;unorganised sector&nbsp;is small-scale and uses traditional tools and methods.</li></ul> <ul><li class="ql-indent-1">The&nbsp;organised sector&nbsp;uses modern machinery and techniques and consists of the spinning, apparel, and garments segment.</li></ul> <h2>Significance:</h2> <ul><li>It contributes&nbsp;2.3%&nbsp;to Indian GDP and employs more than&nbsp;21% of total employment.</li></ul> <ul><li>India is the largest producer of cotton and jute in the world</li></ul> <ul><li>India is also the&nbsp;second-largest producer of silk&nbsp;in the world and 95% of the world’s hand-woven fabric comes from India.</li></ul> <ul><li>India is the&nbsp;6th&nbsp;largest producer&nbsp;of Technical textiles&nbsp;with&nbsp;a 6% Global Share.</li></ul> <h2>Challenges in the Textile Sector:</h2> <ul><li>The Indian textile industry is highly fragmented and is being dominated by the unorganized sector and small and medium industries.</li></ul> <ul><li>The Indian textile industry has its limitations of access to the latest technology (especially in small-scale industries) and failures to meet global standards in the highly competitive market</li></ul> <ul><li>The tax structure makes the garments expensive and uncompetitive in domestic as well as international markets. Another threat is rising labour wages and workers’ salaries.</li></ul> <ul><li>The apparel units in India have an average size of 100 machines which is very little in comparison with Bangladesh, which has on an average of at least 500 machines per factory.</li></ul> <ul><li>Due to the challenges given above the foreign investors are not very enthusiastic about investing in the textile sector which is also one of the areas of concern.</li></ul>