A recent joint study carried out by the Associated Chambers of Commerce & Industry of India (Assocham) and Resurgent, has stated that the size of Indian textile market is expected to touch $250 billion in the next two years from $150 billion now. The joint study also highlighted the contribution of the sector to the national economy in terms of manufacturing production, exports earnings and GDP.
According to the joint study, Indian textile sector contributes 10 per cent to the country's manufacturing production, 5 per cent to the National Gross Domestic Product (GDP), and 13 per cent to exports earnings. Further by employing nearly 51 million people directly and 68 million people indirectly in 2015-16, it is the second largest employment generating sector in the country.
ASSOCHAM-Resurgent study also mentioned the impact of demonetization, Goods and Service Tax (GST) and textile units’ closure on the textile industry, noting that smaller players were worst hit by demonetization and GST, while 4,356 workers affected on account of the closure of 18 units during 2016-17. Besides, it found that capital goods firms are struggling as most of the downstream sectors are saddled with excess capacity and low demand.