India: Apparel and textile industries to reach $220 in a decade

India's textile & apparel (T&A) industry is expected to grow from Rs.3.27 lakh crore ($70 billion) to Rs.10.32 lakh crore ($220 billion) by 2020, according to a research report by Technopak Advisors.

The domestic T&A market size in 2009 was Rs.2.18 lakh crore ($4 billion) and is expected to grow at a compounded annual growth rate (CAGR) of 11% to Rs.6.56 lakh crore ($140 billion) by 2020. The domestic apparel retail market was worth Rs.1.54 lakh crore ($33 billion) in 2009 and will touch Rs.4.70 lakh crore by 2020.

The menswear has a majority share in the apparel market (43%) and is growing at 9%, while womenswear is growing at a higher rate of 12% and is expected to reach 43% share in 2020 from the current 37% of the market.

On the kidswear front, the market is growing rapidly with higher growth in girl's wear (11%) than boys wear (10%). The report said that the home textile market is expected to grow 9% CAGR from Rs.15,570 crore in 2009 to Rs.40,000 crore by 2020.

The report also mentioned that the country has the potential to increase its export share in world trade from the current 4.5% to 8% to reach $80 billion by 2020, attributing to more sourcing shifting from developed countries to Asia and India's strength as a suitable alternative to China for global buyers. Investments to the tune of Rs.3.20 lakh crore ($68 billion) across the textile supply chain will be required by 2020 to tap the potential market created due to the growth of the industry and the investment required in the garment sector by 2020 is $14 billion and for processing $19 billion.