India Booming Economy

  India is one of the world's largest producers of textiles and garments

The domestic garment and textile industry in India contributes approx. 2% of the country's GDP, 7% of industrial production in value. The share of textiles, garments and handicrafts in India's total exports was 11.4% in 2020-21. India holds 4% of the world trade in textiles and clothing.

India is one of the largest producers of cotton and jute in the world. It is also the 2nd largest silk producer in the world and 95% of the hand-woven fabrics in the world come from India. India's technical textiles segment is estimated at $16 billion, or about 6% of the global market. The textile and garment industry in India is the 2nd largest employer in the country, directly employing 45 million people and 100 million people in related industries.

India has also become the second largest PPE manufacturer in the world. More than 600 companies in India are now certified to produce PPE, which is expected to be worth more than $92.5 billion in the global market by 2025, up from $52.7 billion in 2019.

PRIMARY SECTOR

At the level of the primary sector, India is continuously developing, especially with agriculture. Indeed, it occupies the fourth place in the world as an agricultural producer. This sector also occupies more than half of the working population. The most cultivated foodstuffs are rice, wheat, corn, millet, tea, cotton, potatoes and sugar cane. The country is also a very large producer of sheep and cattle. In total, the cultivation of wheat and rice occupy half of the agricultural land. In terms of exports, cereals, cakes, fruits, vegetables and cashew nuts are the most traded.

SECONDARY SECTOR

The country has been able to develop significant know-how in the production of iron to reach in 2003 the 4th position worldwide. Along with steel, lignite and coal, these are areas in which India particularly excels. The main source of energy is coal, which makes India the 3rd largest producer in the world. Thanks to cheap labor, India has greatly developed the textile industry, employing more than 35 million people to date. This sector represents 27% of exports, with a large number of small businesses. The automotive sector is another area that has made particular progress, with a production of 1 million vehicles per year and 8 times more two-wheelers.

 The main brands producing here are Toyota, Honda, Suzuki and Hyundai. After the textile industry, it is the chemical and pharmaceutical industry which occupies a large part of the industrial sector. In total, activities related to the secondary sector occupy 20% of the active population.

TERTIARY SECTOR

In general, the Indian tertiary sector is the one with the strongest dynamism. Today, it contributes more than 50% of the GDP and employs about a quarter of the working population. This sector is growing, particularly since the rise of new technologies and the Internet. Today, India is increasingly considered as a reference in terms of new technologies, with its many engineers and its highly reputable R&D centers in Pune, Bangalore or Hyderabad. 

Large companies such as IBM have definitely established themselves there, to benefit from the know-how of its qualified employees. Telephony has also seen great progress since 2009, when the network had approximately 10 million additional subscribers every month. The insurance sector also finds its place with annual growth of around 20%. In terms of tourism, there is still a great development effort to be made. All in all, this sector is experiencing significant growth, employing 4.4 million people.

INTERNATIONAL EXCHANGES

India is today one of the largest exporters of goods, and this after many years of living under a deliberately protectionist policy. Having signed numerous free trade agreements with major nations such as Australia, South Africa, France (by default, with the EU) or even South Korea, it is continuing its development at the level of dynamic international exchanges. Eventually, both in terms of demographics and computer skills, India should soon become a serious rival of China. The most exported goods are mainly agricultural products, hydrocarbons, jewelry, precious minerals, medicines, as well as cars. The main imports consist of electrical appliances and machinery, in addition to precious minerals and hydrocarbons.

 ECONOMIC CONTEXT

Unlike other emerging countries, the Indian economy has weathered the global economic slowdown well. It has thus benefited from good economic growth, thanks to public spending. Since 2016, a reform program has been launched by Prime Minister Narendra Modi, with the aim of cleaning up public accounts, improving the business climate and promoting industrial development as well as investments. Some of the decisions taken hastily created some disorder in the country, in particular that of demonetizing a whole part of the banknotes in circulation, causing a severe shortage of money. 

India occupies an increasingly important place in the world economy. Its dynamism makes it increasingly competitive, particularly in the fields of new technologies. However, it currently remains dependent on the reforms carried out by the government, with measures that have a strong impact on the daily lives of the Indians.

Source : https://www.investindia.gov.in/fr-fr/sector/textiles-apparel