The economic health of the country acts as a barometer when it comes to growth and investment of the textile industry. Prior to recession, India economy was throbbing, posting a robust growth rate of 9.4 percent p.a. The benefits of economic growth undoubtedly seeped its way down to the people of the country as evidenced by the rising per capita income of India.
The rise in the purchasing power of the middle class, thanks to booming IT-BPO sectors, triggered a huge demand for fashionable clothes which led to the emergence of some world class Indian designers launching latest designer apparels. The Indian middle class, at present, stands somewhere around 351 million.
Today, the textile sector contributes about 14 percent to industrial production, 4 percent to the country's gross domestic product (GDP) and 16.63 percent to export earnings.
Therefore, one can easily assume that market size of India is growing at an accelerated pace. Little wonder, foreign investors are making a beeline for investment in India in an attempt to get hold of this expanding pie. With increasing demand for Indian textiles in the global markets, even new players are trying to cash in by jumping into the fray and even the existing mills are planning to raise their capacity so as to increase supply.
Source : articlesbase
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