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Silk Industry

Silk Industry and Export In India

India is the second-largest producer of silk in the world. The country’s sericulture industry employs around 9.76 million people in rural and semi-urban areas. The industry is one of the largest foreign exchange earners for the country. The sericulture activities in India are spread across 52,360 villages. India produces four types of natural silks; Mulberry, Eri, Tasar and Muga. The country produces silk garments, made-ups, fabrics, yarns, carpets, shawls, scarves, cushion covers and accessories through the raw material.
During April-December 2021, India produced 26,587 metric tonne (MT) of silk. The total silk production in India during 2021-2022 was 34,903 MT, an increase of 3.4% YoY over the previous year (33,770 MT). The share of mulberry production is the largest among other types of silk produced in the country. The major silk-producing states in the country are Andhra Pradesh, Assam, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Chhattisgarh, Maharashtra, Tamil Nadu, Uttar Pradesh and West Bengal. Karnataka contributed around 32% of the total silk production in the country during 2021-22. This was followed by Andhra Pradesh which had a share of 25% in the overall silk production during 2021-22.
India exports raw silk, natural silk yarn, fabrics & made-ups, readymade garments, silk waste and handloom products of silk. During 2021-22, the country’s silk and silk products exports were valued at US$ 248.56 million. This is an increase of 25.3% over the previous year. This growth was achieved despite of Covid pandemic induced challenges and global supply chain disruptions. Product wise split for the exports is as follows - natural silk yarn exports was Rs. 52.62 crores (US$6.6 million) (up 79.2% YoY), silk fabrics and made ups exports was Rs. 837.41 crores (US$105.7 million) (up 14.8% YoY), readymade garments exports were Rs. 671.13 crores (US$ 84.7 million) (up 49.3% YoY), silk carpet exports were Rs. 79.125 crores (US$ 10 million) (down 26.4% YoY), and silk waste was Rs. 208.67 crores (US$ 26.3 million) (up 38.5% YoY).
The silk fabrics and made ups, and silk readymade garments are the most exported silk products from India with 2021-22 exports share of 45.3%, and 36.3%, respectively. The share of other products in India’s total silk exports are as follows – silk waste (11.3%), silk carpets (4.3%), and natural silk yarn (2.8%).India enjoys a unique global position in terms of production and exports of all the commercially useful varieties of silk and the government has initiated various trade shows and fairs in order to promote the exports of silk products across the world.
India’s silk and silk products are highly demanded throughout the world. The country exports to more than 30 countries in the world. Some of the top importers are USA, UAE, China, UK, Australia, Germany, France, Italy, Spain, Malaysia, Nepal, Japan, Belgium, Canada, South Africa and Singapore.
USA is the top importer of silk products from India with a share of 29% as of 2020-21. UAE was the second largest importer of Indian silk after USA, with a share of 10%. These countries are followed by China, UK and Australia which have 8%, 4%, and 4% of the total exports share, respectively.
Natural silk yarn, fabrics and made ups constituted the majority of share in the exports to USA, with 40.9% of all the silk products. This was followed by silk carpets which constituted 23.4% of the total. Handloom silk products and silk readymade garments were 21.6%, and 14%, respectively of the total share exported to USA.
Silk readymade garments comprised the majority of the products exported to UAE with a share of 73.6% in the total exported products. Natural silk yarn, fabrics and made ups constituted 22.4% of the total exported products to UAE.
Silk waste was the major product exported to China with a share of 91.5% of the total exported products.
For the development and growth of the silk industry in India, the government has implemented several research & development, training, transfer of technology and IT initiatives. The focus is to develop new technologies, train more workforce, provide education, and enhance connectivity between scientists, experts, and developers. In addition to these, there are various schemes such as the Sericulture Development in North-Eastern States (NERTPS), Tribal Sub-Plan (TSP), Silk Samagra and Scheduled Caste Sub-Plan (SCSP) are implemented for the development of the industry.
a) Silk Samagra
Silk Samagra is an Integrated Scheme for Development of Silk Industry (ISDSI) which the Government of India introduced through Central Silk Board (CSB). This scheme will have a total outlay of Rs. 2,161.68 crores (US$ 272.8 million) for 3 years (2017-18 to 2019-20) and is aimed at the complete development of the silk industry in India. This scheme will aid in scaling up silk production by improving the quality and productivity.
b) Sericulture Development in the North-Eastern States (NERTPS)
The Government of India has launched the sericulture development scheme within an umbrella scheme ,namely “North-East Region Textile Promotion scheme”. The objective of this scheme is the revival, expansion, and diversification of sericulture in the state with a special focus on Eri and Muga silks.
The Indian Silk Ecport Promotion Council (ISEPC)
Sponsored by the Ministry of Textiles, Government of India, the ISEPC is an apex body of the exporters, manufacturers and merchandisers. The main activities of the council are to explore markets, establish contacts with potential buyers, organize buyer-seller meets, silk fairs, and exhibitions, resolve trade disputes, and promote and develop the Indian silk industry and exports.

Source: India Brand Equity Foundation

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