The EU and India in Search of a Partnership
Chapter 5: The Indian Clothing and Footwear Industries
5.1 TEXTILES AND CLOTHING The Indian textiles and clothing industry occupies a pivQtal role in the economy through its contribution to industrial output, employment generation, and the export earnings of the country. This industry is the Indian manufacturing sector's largest employer, engaging roughly 35 million people (nearly 21 per cent of the total population). In addition, it provides indirect employment to 60 million people or approximately 8.62 per cent of India's total employment. It accounts for 4 per cent of GOP, 14 per cent of industrial production, 27 per cent of India's total foreign exchange and roughly 8 per cent of India's total excise collection. The textiles and clothing industry is regulated by the Ministry of Textiles, and is comprised of two main divisions. The organized mill sector is characterized by relatively sophisticated technology and integrated composite spinning, weaving and processing mills. In contrast, the decentralized sector, the largest part of the industry, is composed of powerloom units (accounting for 62 per cent of total clothing production), and hand loom units (which operate with low levels of technology) as well as hosiery and knitting, readymade, khadi and carpet manufacturing units. The decentralized sector produces nearly 76 per cent of India's total fabric output. The textile industry consists of readymade garments, cotton textiles, man-made textiles, silk textiles, woollen textiles, handicrafts including carpets; coir and jute. The industry is currently growing at an annual growth rate of 16 per cent in value and is expected to have a total value of US...
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