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17 Gujarat Textile Industry Statistics, Trends & Analysis

Located along the western coast of India, the state of Gujarat has more than 1,600 kilometers of coastline. The Arabian Sea provides a border along the west and southwest portion of the state. Because of this friendly location, the state has developed to become one of the most industrialized states in India. The total GDP for the state in 2016 was over $172 billion, with an average annual growth rate of 13.4%.

Because of this strength, Gujarat is often described as being the “growth engine” for India’s economy. More than 30 million meters of raw fabric are produced by the textile industry here in the city of Surat alone. Fabrics can also be processed readily in the state, with 25 million meters of installed capacity in Surat as well.

To support this infrastructure, Gujarat has provided an extensive educational infrastructure to support upcoming generations. There are currently 28 ITIs active, providing industrial training courses for the textile industry. About 6,000 students enroll in these classes each year.

Important Gujarat Textile Industry Statistics

#1. Gujarat is the largest exporter of cotton yard in the world today. The Indian state is also the second-largest producer of cotton, generating more than 36 million bales per year. (Government of Gujarat)

#2. The state is also the second-largest exporter of textiles in the world today, falling only behind China. About Rs. 772 billion in total global textile exports comes from Gujarat, representing 5.2% of the total exports. (Government of Gujarat)

#3. Gujarat is the second-largest exporter of jute goods in the world as well, contributing another $330 million to the total export figures. (Government of Gujarat)

#4. 13% of the world’s textile fibers are produced in the state, making it the world’s second-largest supplier in this category too. (Government of Gujarat)

#5. 18% of the world’s silk is produced within Gujarat, making the state the world’s second-largest producer of raw silk. (Government of Gujarat)

#6. 59% of the world’s loom capacity is found within Gujarat, making it the second-largest region for textile manufacturing capacity in the world today. The Indian state accounts for 24% of the world’s spindle capacity as well. (Government of Gujarat)

#7. The Gujarat textile industry is responsible for the direct and indirect employment of more than 105 million people. 21% of total employment is generated by this industry, which places it just behind agriculture as the top employer. (Government of Gujarat)

#8. The textile industry is responsible for about 10% of the manufacturing production in the state, generates 13% of India’s total exports, and contributes 2% of the GDP. (Government of Gujarat)

#9. Gujarat is home to one of the largest sheep populations in the world today, producing more than 45 million kilograms of raw wool each year. In terms of clean wool production, the Indian state ranks sixth in the world. (Government of Gujarat)

#10. More than 1,500 medium-to-large textile units are located within the state, with the textile market estimated to hold a value of $25 billion. (Government of Gujarat)

#11. Gujarat is the largest producer of denim in India, responsible for 65% of the total capacity. About 1 billion meters of denim is currently possible with the available installed capacity. (Government of Gujarat)

#12. Almost all of the wool which is produced in Gujarat goes to other Indian states to have it be processed. Most of what is produced is carpet-grade wool. (Government of Gujarat)

#13. 90% of the cotton output achieved by the state is sent to other states. From there, it is processed into hosiery yarn that creates garments which are sold in Walmart, Macy’s, and other U.S. retail locations. (Government of Gujarat)

#14. More than $19.5 billion has been received in foreign direct investment by the Gujarat textile industry. Over 24% of the fixed investments and production value occurs through small scale industries. (Fibre 2 Fashion)

#15. Gujarta currently contributes about 16% of the total manufacturing capacity that is currently found within the India textile industry, despite occupying just 6% of the geographical area of India. (KPMG)

#16. Despite the large levels of textile manufacturing, the textile industry is just the fifth-largest share of manufacturing production, at 6.9% of overall capacity. Petroleum products is ranked fist, with a 34% share, followed by pharmaceuticals at 27%, engineering industries at 9.3%, and food processing at 8.7%. (KPMG)

#17. About 90% of the polyester that is used throughout India originates from Surat. Textile production within the city has grown by more than 10% from 2012-2017. (Fibre 2 Fashion)

Gujarat Textile Industry Trends and Analysis

Numerous subsidies are available to manufacturers within the textile industry of Gujarat. There is an interest subsidy of 5% on new plants and machinery. There is another 6% interest subsidy for technical textiles, while a 7% interest subsidy is available for plants and machinery related to cotton spinning.

Since 2012, there have been more than 1,100 cotton ginning units active in the state. By 2017, the number was estimated to have increased by more than 30%. The spinning capacity within the industry was estimated to have doubled within the same period, going from 2 million spindles to 4 million.

With such a strong base across the entire value chain, Gujarat is poised to continue being the growth engine for India’s economy. It is the home of Asia’s largest manufacturer of corduroy fabric, has numerous global brands involved with textile production, and seeks to create another 1 million jobs in the common years.

Where the industry is lagging behind is in IT development. Compared to the other Indian states, software exports and hardware installations are holding the industry back. There has been a concerted push to add more power looms to facilities to increase production. To fully maximize the capacity, however, a push toward automation will be required eventually.

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