India Textile and Apparel Industry

1. Downloaded from: justpaste.it/90jqf India’s Textile and Apparel Industry Daily Current Affairs Context: • India has touched US$ 44.4 Bn in the textiles and apparel industry including the handicrafts in the fiscal year 2021–22 indicating a substantial increase of 41% and 26% over corresponding figures in FY 2020–21 and FY 2019–20, respectively. Which are the export destinations? USA — 27% • EU — 18% • Bangladesh — 12% • UAE — 6%

2. Background: • The textile industry which is labour intensive provides up to 45 million employees in India which only stands next to the agriculture sector in terms of employment. • The textile industry in India contributes significantly to the economy, it contributes up to 2.3% of the total GDP and also it contributes 7% in in the industrial output. • It is also important to note that the export revenue from the textile sector makes up 12% of the total export earnings.

3. What are the challenges faced by the textile industry? One of the hindrances to the Indian textile industry is that it is highly unorganised and fragmented which is a challenge in front of the mass production of textiles around the world. • It is also evident that the textile industry has not received much attention from foreign investors, FDI inflow into this sector is too low. • Apart from this the exports from India have remained stagnant with new competitors in the South Asian region especially Bangladesh doing well in the textile sector. • The stakeholders of the textile industry argue that the tax regime in India has made Indian producers be expensive and uncompetitive. Source: THE HINDU.