Indian Textile Industry and how has Contract Manufacturing Contributed in its Growth

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Indian Textile Industry and how has Contract
Manufacturing Contributed in its Growth India is
the 2nd largest textile manufacturer in the world
and one of the few countries that are capable of
completing the whole process of production, from
the yarn to the final product, ready for the
market. Earliest to come into existence, it
accounts for 14 of the total industrial
production and contributes to nearly 30 of the
total export. This sector makes up around 2.3
of the GDP and is the biggest employer with
around 45 million workers, according to the
reports from FDI India. Recognized as one of the
best sourcing destinations for garments and
textiles, the Indian textile industrys greatest
strengths are a strong production base of a wide
range of fibres and yarns, an abundance of raw
materials, availability of skilled manpower,
competitive manufacturing costs
etc. What Union Budget 2022-23 has in the store fo
r this sector? The Indian textile industry is
one of the most important pillars of the Indian
economy in terms of output, foreign exchange
earnings and employment. Thus, the growth and
development of this industry have a direct impact
on Indias economy. Finance Minister Nirmala
Sitharaman presented the Union Budget 2022-23 and
announced allocation for the textile sector
which will be 8.1 higher than the previous
year's budget and seven mega textile parks have
been planned to double the industry size to 300
billion by 2025- 26. Steps like these taken by
the Government are intended to strengthen the
micro, small and medium enterprises segment
which holds the major share in the textile and
clothing sector.
Textile and apparel manufacturing sourcing
companies in India and sourcing by global
retailers to India are expected to have an annual
increase of 12 per cent. The overall textile
market of India is expected to grow at a CAGR of
10 to reach 190 billion by 2025-26. Top
clothing manufacturers like Raymond textile and
apparel, Billoomi fashion, Aquarelle group,
Century Enka etc. and top clothing companies
in India like Levis, Flying Machine, Monte
Carlo, Lee, Van Heusen and Numero Uno are
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keeping the clothing industry up to date and
making sure that the industry is growing and
evolving with changes in fashion trends to make
India the most preferred sourcing The US
restrictions on Chinese exports have benefitted
the Indian apparel sector and the textile
contract manufacturers which have resulted in an
18 increase in garment export to the US. Hence,
finding a relevant contract manufacturer who can
meet the companys business needs becomes an
important aspect. Industry Experts, a B2B
sourcing platform, connects the brands with the
suitable contract manufacturer according to the
business needs.