The Indian Textile industries have an overwhelming presence in economic life of
India. Textile industry is also the largest in the country in terms of employment
generation. The Indian Textile Industry has a great presence in the economy of the
country by way of conftribution to industrial output, employment generation and the
export earning of the country. The growth figures of the last few years have made the
entire textile industry brim with unprecedented confidence and optimism. These
growth targets envisaged a fundamental shift in the textile scenario and have taken
aroute of avery rapid growth.
The Indian textile industry plays a vital role in the Indian economy by contributing to
GDP, generating employment and earning foreign exchange. The worldwide trade of
textiles and clothing has boosted up the GDP of India to a great extent as this sector has
brought in a huge amount of revenue in the country. It confributes about 14% to
industrial production, 4% to the gross domestic product (GDP) and 17% to the country's
export earnings. It provides direct employment to over 35 million people. Thus, the
growth and all round development of this industry has a direct bearing on the
improvement of the economy oft he nation.
The textile industry has witnessed steady growth in the recent past with the friendly
policies announced by the Government. The industry has undergone drastic changes
over the decades, particularly after the introduction of Technology Up-gradation
Funds (TUFs) scheme by the Government of India and majority of the textile companies
have modernized/renovated their plants in order to provide quality products and meet
the global standards. Indian Textile Industry has gone through the metamorphosis from
being a'cottage industry' to the state of supremacy: On the Way of deeper integration
with world economy and expansion in domestic economy, the industry picked up the
momentum. Most of the existing and new units commenced process of expansion and
modernization to cater to the increasing market demands. The Government of India,
recognizing the potential of the Indian Textile Industry has taken several measures over
the years to improve the industry's cost competitiveness and have also introduced
certain fiscal and monetary relief measures for the domestic industry including textiles
industry.