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'Textile sector can triple in size, create 50 mn jobs by 2025'

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Press Trust of India New Delhi
Last Updated : Jun 22 2016 | 8:13 PM IST
The textile and apparel sector can triple in size over the next 10 years, get USD 150 billion in foreign exchange annually, and create an additional 50 million jobs by 2025, a study said today.
"If the industry achieves breakout growth, we estimate another 50 million jobs to be created by 2025, 35-40 million of which will be employing women," noted the study, commissioned by CII to the Boston Consulting Group (BCG).
The study estimated that the industry can triple in size over the next 10 years, get USD 150 billion annually in foreign exchange, and spur the apparel, made-ups and textile industry to reach USD 300 billion by 2025.
The domestic market will grow at least 2.5 times to become around USD 150 billion in size, it observed.
CII pointed out that with an increase in wages and the yuan gaining strength, industry is shifting its base away from China, creating a potential market of over USD 280 billion for other countries to capture.
"The shift is already happening in the apparel sector, large shifts are expected in fabric and yarn sourcing as well. Though Bangladesh and Vietnam are the current frontrunners, emergence of hubs in Africa (eg Ethiopia) and a strong resurgence seen for manufacturing in the US, the future landscape could be dramatically different," CII said.
Meanwhile, the government today approved a Rs 6,000 crore special package for textiles and apparel sector to create one crore new jobs in 3 years, attract investments of USD 11 billion and generate USD 30 billion in exports.
The approved measures include additional incentives for duty drawback scheme for garments, flexibility in labour laws to increase productivity as well as tax and production incentives for job creation in garment manufacturing.

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First Published: Jun 22 2016 | 8:13 PM IST

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