A STUDY ON PROBLEMS FACED BY INDIAN TEXTILE INDUSTRY

WITH REFERENCE TO COIMBATORE AND TIRUPUR CITY

ABSTRACT
The textile Sector in India ranks next to Agriculture. Textile Industry is one of the oldest
Industries and has a formidable presence. The textile industries occupies unique place in our
country. Without textile Industries there is nothing. It contributes to about 14 per cent of
manufacturing value-addition, accounts for around one-third of our gross export earnings and
provides gainful employment to millions of people. But there are many problems faced in the
textile industries. There is lot of exports and imports take over in the industry. Textile Industry
is providing one of the most basic needs of people and the holds importance; maintaining
sustained growth for improving quality of life. Exports are at high in the textile Industry. But that
creates a major loss and dollar rate differences to peak.
My study is regarding the Indian Textile Industrys present position and the problems
faced by them. And also to study how to rectify the problems in Indian textile Industry to a
certain level. To find out the suggestions about the textile industrys problems and to raise the
standard to foreign textile Industry. Through my study I find what are the major problems faced
and the help needed for the Industry. The research helps to find out the overall industries
problems and the machineries used, type of textile industries, their present scenario and various
other informations related to textile Industry.
Studying about textile industry is important and needed. As people are not aware of the
problems regarding the textile industries and the ways to develop the industries. Due to textile
industries exports and problems there is a major loss faced in the country. To rectify the
problems and find solutions, a research on textile Industry is very much needed. And also helps
in improving Indian Textile Industries.

INTRODUCTION

The Indian textile industry is one of the largest in the world with a massive raw material and
textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and
trade in addition to other major industries. About 27% of the foreign exchange earnings are on
account of export of textiles and clothing alone. The textiles and clothing sector contributes
about 14% to the industrial production and 3% to the gross domestic product of the country.
Around 8% of the total excise revenue collection is contributed by the textile industry. So much
so, the textile industry accounts for as large as 21% of the total employment generated in the
economy. Around 35 million people are directly employed in the textile manufacturing activities.
Indirect employment including the manpower engaged in agricultural based raw-material
production like cotton and related trade and handling could be stated to be around another 60
million.
A textile is the largest single industry in India (and amongst the biggest in the world), accounting
for about 20% of the total industrial production. It provides direct employment to around 20
million people. Textile and clothing exports account for one-third of the total value of exports
from the country. There are 1,227 textile mills with a spinning capacity of about 29 million
spindles. While yarn is mostly produced in the mills, fabrics are produced in the powerloom and
handloom sectors as well. The Indian textile industry continues to be predominantly based on
cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton
cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1
million metric tons) ranks next in importance to cotton weaving. Textile is one of Indias oldest
industries and has a formidable presence in the national economy inasmuch as it contributes to
about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross
export earnings and provides gainful employment to millions of people. They include cotton and
jute growers, artisans and weavers who are engaged in the organised as well as decentralised and
household sectors spread across the entire country.

HISTORY OF INDIAN TEXTILE INDUSTRY

The history of textiles in India dates back to nearly five thousand years to the days of the
Harappan civilization. Evidences that India has been trading silk in return for spices from the 2nd
century have been found. This shows that textiles are an industry which has existed for centuries
in our country. Recently there has been a sizeable increase in the demand for Indian textiles in
the market. India is fast emerging as a competitor to China in textile exports. The Government of
India has also realized this fact and lowered the customs duty and reduced the restrictions on the
imported textile machinery. The intention of the governments move is to enable the Indian
producers to compete in the world market with high quality products. The results of the
governments move can be visible as Indian companies like Arvind Mills, Mafatlal, Grasim;
Reliance Industries have become prominent players in the world. The Indian textile industry is
the second largest in the world-second only to China. The other competing countries are Korea
and Taiwan. Indian Textile constitutes 35% of the total exports of our country.