The Textile Ministry in India is currently headed by Smriti Irani, with its headquarters in Udyog Bhawan, New Delhi. The ministry plays a major role in the Indian economy. It is one of the oldest sectors of the Indian economy and contributes significantly towards the national income.

Currently, the textile industry contributes 14 per cent to industrial production in India and adds 4 per cent to the GDP. With over 45 million people, the industry is one of the largest source of employment generation in the country. About 15 per cent of the total exports of the country is credited to the textile industry. The size of the industry is on the increase. Its size was around US$ 137 in 2016 and is expected to reach US$ 226 by 2023.

The textile industry has two broad sectors. Handloom, handicrafts and sericulture is one of the segments that constitutes the textile industry.

Market size

The sale of Indian Khadi increased by 33 per cent in the year 2016 and is expected to exceed 5000 cr in the year 2018-19, as affirmed by the Khadi and Village Industries Commission (KVIC).

Production of raw cotton increased from 28 million bales to 35.1 million vales in the year 2016-17. The total area cultivated for cotton is expected to increase to 11.3 million hectares in 2018, due to expectations from rising prices and increased crop yield in the year 2016-17.

Also, in the area of locally made lifestyle products, exports increased at a growth rate of 10 per cent from 2013 to 2016. The target of the textile ministry is to increase the exports to US$ 45 billion for the year 2018.

Investment

The textile sector of India has witnessed a boom in investment over the last five years. The industry has successfully derived Foreign Direct Investment (FDI) worth US$ 25 billion from April 2000 to June 2017.

One of the most notable invested is made by Raymond. The company has entered into a partnership with KVIC to sell khadi marked readymade apparels and fabric from Raymond outlets throughout India.

Government initiatives

The Government of India has come up with a number of policies to promote exports from the textile sector. It has also allowed for 100 per cent FDI in the Indian textile sector.

Some of the major initiatives are:

• The Government has planned to connect as many as 5 crore women to the indigenous method of 'Charkha' or spinning the wheel over the next 5 years. Its primary intention is to provide employment to women, empower them and also add to the sale of Khadi.  The Government has inaugurated over 50 Khadi outlets throughout India, to mark the completion of the 60th anniversary of KVIC.

• The textiles ministry has planned to organize 'Hastkala Sahyog Shivirs'  in 421 handloom clusters across India. This will benefit over 1.2 lakh artisans and weavers in India.

• The textile ministry has also signed MoUs with 20 e-commerce retailers for providing a platform for artisans and weavers of handloom industry to sell their products. This has enabled the handloom clusters to sell their products directly to consumers.

The future of the Indian textile and handloom industry looks quite promising. This has been made possible due to government initiatives as well as the rise in demand of exports. Economic prosperity in the country has also led to the creation of a huge domestic market, estimated at US$ 85 billion which is expected to reach US$ 160 by the year 2025.