Textiles and Apparel production around the globe is going through an interesting period of change. Major consuming countries like the USA, the EU and Japan are increasing their imports of apparel from Asian countries. As a consequence, Textiles and Apparel production is shifting to Asian countries which have the ability to leverage their relative lower production costs. India, which has long tradition of textiles production, has been able to establish itself as a leading player on the global scene. India has managed to maintain a healthy annual growth rate of over 5% for the past 5 years. The country also enjoys the added advantages of an abundant supply of labour; socio-political stability and a strong tradition of creating entrepreneurship which has helped the textile industry grow and seize available opportunities.
The Indian textile and apparel industry is poised for high growth in the coming years as more and more buyers are shifting to source their products. India’s Textile & Apparel exports stands at USD 32.7 Bn in 2012, Apparel and Yarn exports have contributed the most to attain this figure. Overall exports from India have grown at a CAGR of 10% from 2005-12. India’s share of Global production and Retail market in 2012 in Fibre was 15%, in Yarn 9%, in Fabric 18%, in Garment 13% which is second only to China and in Retail it was 3%. USA and EU are among the top exports destinations for both Textiles & Apparels.
The Textiles & Apparel industry contributes 14% of India’s Industrial production, more than 4% of the GDP and around 17% of the country’s export earnings. It is also second largest employer, after agriculture, and provides direct employment to 45 million people.
In this promising scenario for the Indian Textile and Apparel industry, Integrated Textile Park Scheme is a suitable platform for investments in Textile & Apparel industry. In the global context, it is important for India to develop integrated textile clusters with good support infrastructure aligning with Guntur Textile Park Pvt. Ltd. Buyers’ requirements of value added services along with good quality and low cost. Government of India has also supported the industry with various incentives like TUFS, SITP scheme, development of textile clusters, SEZ’s etc.
In Andhra Pradesh Textile Industry has its unique position as a self-reliant industry, from production of raw materials to Fabric and Garment and has major contribution to the economy. Andhra Pradesh is the 3rd largest producer of cotton. Andhra Pradesh is likely future destination for new investments, especially in the garmenting sector with establishment of Apparel Parks. The Government initiatives of providing power at lower cost will be a key factor in attracting investments in spinning sector. Also, the state has surplus cotton and would result in lower logistics cost. Availability of raw materials and lower power costs will also attract investments in the downstream activities like fabric manufacturing, processing and garmenting.
In this regard the development of a Textile park at Chilakaluripet, Guntur is ideal as it involves all the incentives and support structure required for Textile Park. The scope of the Park includes development, design, procurement and construction of common infrastructure and facilities 19 GTPPL like internal roads, water supply & distribution, power distribution, sewerage, storm water drains and other common infrastructural facilities for the member entrepreneurs of the Park.
