The Indian Textiles and Clothing (T&C) industry plays acrucial role in the Indian economy and contributes about 7 percent ofindustrial production and 2 percent of Gross Domestic Product (GDP) of thecountry.

Industryalso creates employment opportunities for about 45 million people andaccounts for 12.57 percent of the export of the country with a share of5.03 percent in textiles (HS Chapter 50 to 60) and 7.54 percent inclothing and made-ups (HS Chapter 61 to 63) in the global market during 2017. 

The domesticdemand of textiles, which is characterised by demand from Household andNon-Household sector, plays a significant role in the overall growth andperformance of the Textiles Industry of India. The Householdsector is the major growth driver and contributes about 53.39 percent to theoverall demand of textiles and clothing products.

In orderto estimate the domestic demand for Textiles and Clothing in the Householdsector, the Textiles Committee has been publishing an Annual Report titled“Market for Textiles and Clothing (MTC)” since the year 1969.

The reportestimates the per capita and aggregate demand of textiles & clothing in thecountry by region, gender, area, income group etc. besides estimating thepreference pattern by fibre, product groups viz. woven apparels, knittedapparels, home textiles, etc. in the Household sector of the country. This isthe only authenticated report available in the country, which provides domesticmarket size of textiles at dis-aggregated level.

The reportis published on the basis of the textile purchase data collected bi-monthlyfrom selected panel Household across the country. The data base generated fromthe collected data is analyzed and findings of the report are published in theform of an annual Report. The latest annual report “Market for Textiles and Clothing (MTC): NationalHousehold Survey 2017” has been prepared by the TextilesCommittee. Besides, estimating the domestic demand for 2015 & 2016, thereport has also forecastedthe market size for 2017 & 2018.

The key findings of the “Market for Textiles and Clothing (MTC)”are as follows:

1. Domestic demand of Textiles in the Household sector: 

Theoverall market size of Textilesand Clothing including exports has increasedfrom USD 145.71 billion in 2015 to USD 146.63 billion in 2016, which isexpected to touch USD 164 billion by 2018. Out of USD 146.63 billion (2016),exports accounted for USD 35.43 billion whereas Household sector accounted forUSD 78.28 billion followed by USD 32.91 billion of Non-Household sector in2016.

Thus, theHousehold sector contributed 53.39 percent to the overall market size of theTextiles and Clothing and the same has been analysed in detail in the MTC,2017.

2. Aggregate demand for Textiles &Clothing in Household sector in terms of quantity and value:

Theaggregate demand for Textiles & Clothing was 41.06 billion metres in 2016as compared to 38.54 billion metres in 2015 and have experienced an annualgrowth rate of 6.55 percent and demand is expected to touch 45.32 billion.metres by 2018, growing at a Compound Annual Growth Rate (CAGR) of 5.34 percent between 2011-2018.

In termsof value, the demand has increased to Rs.5261.53 billion in 2016 as compared toRs.4883.57 billion in 2015 and has experienced an annual growth rate of 7.74percent and demand is expected to touch Rs.6204.02 billion by 2018, with CAGRof 9.54 per cent between 2011-2018.

3. Per Capita Demand for Textiles &Clothing in the Household Sector:

The percapita demand for textiles was Rs. 4081.60 in 2016 as compared to Rs. 3836.13in 2015 and has experienced a growth of 6.40 percent and the per capita demandis expected to touch Rs.4762.90 by 2018, with a CAGR of 8.53 per cent between2011-2018.

On theother hand, the per capita demand for textile in terms of quantity hasincreased to 31.85 metres in 2016 as compared to 30.27 metres in 2015 with agrowth of 5.23 percent during the period, and the per capita demand is expectedto touch 34.58 mtrs. by 2018, with a CAGR of 4.30 per cent between 2011-2018..

The changein per capita demand indicates that an average person’s consumption of textilehas increased by 1.58 metres during the period 2015-16. It is pertinent tomention that while the growth in demand was 6.91 percent in the urban area, itwas 6.01 percent in the rural area during the same period.

 Fibre wise Demand for Textiles:

Theaggregate demand for cottonfibre based product was 17.22 billion metres in 2016 ascompared to 16.51 billion metres in 2015 and has experienced an annual growthof 4.28 percent and aggregate demand is expected to touch 19.29 billion metersby 2018. The demand for manmade fibre based product was 23.34billion metres in 2016 as against 21.60 billion metres in 2015

with agrowth of 08.04 percent which is expected to touch 25.46 billion metres by2018.

Similarly,the aggregate demand for pure silk and woolen fibrebased product was 0.34 and 0.16 billion metres respectively in 2016 as against0.27 and 0.15 billion metres in 2015, showing a positive growth of 25.18percent and 8 percent respectively, which is expected to touch 0.37 and 0.20billion metres respectively by 2018.

The surveyreveals that out of the total aggregate consumption of 41.06 billion millionmetres (Per Capita 31.85 metres) of textiles in the year 2016, Manmade andBlended/Mixed textiles together have the largest share of 56.83 percentfollowed by Cotton textileswith 41.94 percent, PureSilk textiles with 0.84 percent and Woolen textileswith 0.39 percent. Hence, the demand for manmade fibre based products has beengrowing and contributing significantly to the overall demand in the Householdsector.

1.Demand for Textiles as per the Sector of Manufacturing:

The Mill/ Powerloom sectorhas contributed 33.97 billion metres (82.72 percent) to the overall demand fortextiles in 2016 compared to 31.85 billion metres in 2015 (82.65 percent).Similarly, the Knittedsector has contributed 4.94 billion metres (12.04 percent)to the total basket in 2016 as against 4.77 billion metres (12.39 percent) in2015.

At thesame time, the handloomsector contributed 5.24 percent to the total demand fortextiles in the Household sector. The aggregate demand for handloom textiles is2.15 billion metres in 2016 as compared to 1.91 billion metres (4.96 percent)in 2015. The demand for handloom textiles has increased by 12.66 percent ascompared to the previous year.

Theprojected aggregate demand for textiles by sector of manufacturing is estimatedfor Mill made/ Power loom, Knitted/Hosiery and Handloom sector to be 37.24billion Metres, 5.56 billion Metres and 2.53 billion metres respectively forthe year 2018.

2.Major Varieties demanded by the Household sector:

Someimportant varieties which are highly demanded in the Household sector pertainsto (i) personal clothing and (ii) home textiles.

Amongthe personalclothing’s, products like shirt, trousers, frock, skirt midi,jeans (male and female), sweater, saree, kurta pyjama, leggings constitutes themajor varieties in the reference period. Similarly, the inner wears likeBanian, underwear, briefs, petticoat, panties, brassiere, are also contributing a major chunk of demand in the personal clothing categories.

The MTC2017 report indicates that the market size of personal clothing items was 37.87billion metres during 2016 as against 35.52 billion metres in 2015 and hasexperienced a growth of 6.60 percent during the reference period. The

marketsize of personal clothing items is expected to touch 39.64 billion metresduring 2017 as against 41.66 billion metres in 2018 and experiencing a growthof 5.08 percent during this same period.

Demand for some major varieties from PersonalClothing & Home Textiles:

As regardsHome textiles items, products like chaddar, bedsheets, towel and terry towelscontributed significantly to this segment. In addition, the products likemosquito net, pillow cover or cushion cover, furnishing materials, blanketshave also increased their presence in the product basket.

Conclusion

The demandfor the Household sector is the major contributor to the overall growth of thesector with 53.39 percent (USD 78.28 billion) share in the total market size,which is expected to touch 54.90 percent (USD 89.88 billion) in 2018. While theexport of T&C decreased at 4.66 percent and the demand in Household &non-Household sector grew by 2.82 and 1.51 percent respectively

during2016. For the year 2018, is the exports are expected to increase by 12.79percent, whereas the demand in Household & Non-Household sectors areexpected to increase by 14.82 percent and 2.89 percent respectively.

It isworth mentioning that the growth in Household demand for textiles has broughtabout additional demand for 2.53 billion metres of fabrics in 2016, which isexpected to touch 4.76 billion metres in 2018 from 2015, which is pointertowards required capacity expansion in the fabrics manufacturing in thecountry.  Similarly, the growing demand for the newly emerged productslike legging etc. provides an indication at the change in preference pattern ofthe consumers in the country during the period. Hence, the many findings in thereport may provide authenticdata & insights for informed decisionmaking by the businesses, trade & industry, researchers & policy makersetc.

Source: Executive Summary of ‘Market for Textiles & Clothingreport 2017’ by Textiles Committee

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