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The Indian Textiles and Clothing Industry and Innovation Policies

In: Innovation Policies and International Trade Rules

Author

Listed:
  • K. Narayanan

Abstract

The Indian textiles and clothing (T&C) industry is one of the largest and oldest sectors in the country. It is an important sector of the economy in terms of output and investment and employs nearly 35 million people, making it the second-highest employer in the country behind agriculture. It accounts for around 4 per cent of gross domestic product, 14 per cent of industrial production, 9 per cent of excise collection, 18 per cent of employment in the industrial sector and 16 per cent of the country’s total exports earnings. It has a direct link with the rural economy and the agricultural sector. The salient features of the Indian textiles industry are that it has a strong raw materials production base, a vast pool of skilled and unskilled labour, freely available cheap labour, export potential and a low level of dependency upon imports. This is a traditional, well-established industry which is enjoying considerable demand in both the domestic and the global markets.

Suggested Citation

  • K. Narayanan, 2009. "The Indian Textiles and Clothing Industry and Innovation Policies," Palgrave Macmillan Books, in: Kaushalesh Lal & Pierre A. Mohnen (ed.), Innovation Policies and International Trade Rules, chapter 4, pages 97-140, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24620-1_4
    DOI: 10.1057/9780230246201_4
    as

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