Here’s Why Betting on Textile Industry is Right for Young Aspiring Entrepreneurs

Indian textile industry is one of the oldest segments that have upheld the country for decades. The industry is renowned for hand-woven textiles that are well-liked by customers in the home country as well as abroad. Some of the biggest elements of the textile sector are power looms, hosiery, and knitting segments. Besides these styles, the industry has a capacity to engender a wide variety of textiles. 

According to a report by IBEF, the country's textile industry contributed 7 per cent to the industry output (by value) in 2018-19. The Indian textiles and apparel industry contributed 2 per cent to the GDP, 12 per cent to export earnings and held 5 per cent of the global trade in textiles and apparel in 2018-19.

The textile industry acts as a strong pillar for the country’s economy. Young minds should participate in elevating this sector by initiating their textile business. Millennials with their technical know-how and resourcefulness can take the textile industry to new heights. 

Here are some developments in the textile industry that would allure young aspiring entrepreneurs to set foot into the niche. 

Employment 

Unemployment is a rising concern for the Indian demographic as well as the economy. To decrease unemployment, entrepreneurs can participate in the ever-flourishing textile segment. Setting up textile mills, employing unskilled workforce and making them skillful will not only help garner money but give job opportunities to a wide rural as well as urban population. 

According to a report by InvestIndia, the textiles and apparel industry in India is the second-largest employer in the country providing direct employment to 45 million people and 60 million people in allied industries. The share of the country's textiles and apparel exports in mercantile exports is 11 per cent for the year 2019-20.

Investment 

Indian textile and apparel industry has reportedly received immense investment across the world. The above-cited report unveiled that foreign direct investment in the sector has increased up to $3.45 billion during the last year. 

In addition, exports in the textiles and apparel industry are expected to reach $300 billion by 2024-25 resulting in a tripling of the Indian market share from 5 per cent to 15 per cent. Therefore, aspiring entrepreneurs can also think of becoming exporters and export goods outside India.

Growth 

The demand for Indian textiles has been increasing. To meet the rising needs of customers, the textile industry is likely to expand further in the coming years. The cited report states that to double the industry size to $300 billion by 2025-26, 7 mega textile parks have been planned. Indian technical textiles market is expected to grow at a rapid 7.6 per cent in the Asia Pacific region to reach $23.3 billion in 2027, up from $14 billion in 2020. 

Therefore, starting a textile business now will be the right business idea for millennials. Apart from the private sector, the Indian government is also emphasizing the significance of the textile industry, in turn, rolling out several programs to boost the market. 

These reasons aptly reveal why young entrepreneurs should establish a textile business. Besides this, various other developments are taking place in the textile industry. To know more about the industry, then read other articles at BusinessEx.