explain the growth of textile industry
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Some of the very recent developments in Indian Textile Industry. On a year-on-year basis, cotton textile industry has posted a growth of around 14.8 % followed by the products produced by textile industry with a growth rate of above 11%. ... Export growth rate of cotton textiles recorded a growth rate of 21.47%
Indian Textile Industry is going through a major change in its outlook after the expiry of Multi-Fiber Agreement.
Multi Fiber Agreement was introduced in the year 1974 as a short term measure directed towards providing a limited time period to the developed countries for adjusting their textile industries in accordance with that of the developing countries. The textile industries are characterized by their labor intensive nature of commodity production. Availability of surplus labor is abundant in the developing countries. These countries have comparative advantage in the production of textile related products and hence are able to supply goods at a very low price. The basic idea behind this policy was to eradicate all sorts of quota system from the apparel and textile industry all over the world so that a level playing field could be established. This whole process of dismantlement of quota system was completed on 01.01.2005.
Indian Textile Industry is going through a major change in its outlook after the expiry of Multi-Fiber Agreement.
Multi Fiber Agreement was introduced in the year 1974 as a short term measure directed towards providing a limited time period to the developed countries for adjusting their textile industries in accordance with that of the developing countries. The textile industries are characterized by their labor intensive nature of commodity production. Availability of surplus labor is abundant in the developing countries. These countries have comparative advantage in the production of textile related products and hence are able to supply goods at a very low price. The basic idea behind this policy was to eradicate all sorts of quota system from the apparel and textile industry all over the world so that a level playing field could be established. This whole process of dismantlement of quota system was completed on 01.01.2005.
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Growth along with the investment of an industry depends heavily on the economic health of the country. Indian economy grew rapidly during the fiscal year 2006-2007 posting a growth rate of 9.4% p.a. Not only this, India has been performing significantly in the last three years where its average yearly rate of growth has been estimated to be 8%.
The fruits of economic growth has trickled down to people of the state which can be evidenced from the rising per capita income of India. Statistics reveal that during 2001-2007 (up to March 2007) the per capita income of India has increased by sixty two percent and has reached the level of Rs 25,778 or US$ 581.37 per annum.
One of the most beneficial class of this economic growth saga has been the middle income section of the society. The total strength of this class in absolute terms has been found out to be 216 million which is expected to rise to 351 million by 2010. The major demand that is being generated is by a new class of people from the booming IT-BPO sector who are still at their prime age and are outwardly fashion savvy. This has generated huge demand for fashionable dresses which has consequently led to the emergence of some world class Indian designers with their latest fashion apparels.
The fruits of economic growth has trickled down to people of the state which can be evidenced from the rising per capita income of India. Statistics reveal that during 2001-2007 (up to March 2007) the per capita income of India has increased by sixty two percent and has reached the level of Rs 25,778 or US$ 581.37 per annum.
One of the most beneficial class of this economic growth saga has been the middle income section of the society. The total strength of this class in absolute terms has been found out to be 216 million which is expected to rise to 351 million by 2010. The major demand that is being generated is by a new class of people from the booming IT-BPO sector who are still at their prime age and are outwardly fashion savvy. This has generated huge demand for fashionable dresses which has consequently led to the emergence of some world class Indian designers with their latest fashion apparels.
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