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Wool And Woolen Textile Industry

Wool And Woolen Textile Exports form India
India has the third largest sheep populations in the world. Its sheep population is 74.26 million and it is the ninth largest wool producing country. The size of woolen industry of India in 2020-21 was Rs. 12,444 crore (US$ 1.6 billion). The annual wool production of the country is around 43-46 million kg. It accounts for about 2% of the world’s total production. In 2019-20, India’s wool consumption was around 260 million kg.
India’s wool and woolen industry is the seventh-largest in the world and one of the important sectors of India’s rural economy. The woolen industry employs 12 lakh people in the organized sector and 20 lakh in the sheep rearing and farming sector. The wool and woolen industry in India comprises of organized and decentralized sectors. The organized sector comprises of composite mills, combing units, worsted and non-worsted spinning units, knitwear and woven garments units and machine-made carpet manufacturing units. The decentralized sector consists of hosiery and knitting units, powerloom units, hand-made carpets, druggets and namadahs units and independent dyeing and process houses. The major wool-producing state in India are Rajasthan, Karnataka, Telangana, Gujarat, Himachal Pradesh, Uttarakhand, Himachal Pradesh, Maharashtra, Uttar Pradesh and Andhra Pradesh.
India exports multiple woolen products including tops, worsted yarn, ready-made garments, woolen yarn, wool tops, fabric, shoddy yarn, shoddy fabrics, blankets, knitwear, hand-made carpets and machine-made carpets, etc. In 2021-22 (until January 2022), export of wollen items Rs. 12,877.52 crore (US$ 1.55 billion). In the year 2020-21, the total export value of wool and woolen products was Rs. 69.31 billion (US$ 935 million). The same for the year 2019-20 was Rs. 91.72 billion (US$ 1.3 billion). The floor coverings and carpets made of wool are the largest exported woolen product from India. During 2020-21, the share of these products in total woolen exports was 42%, valued at US$ 395 million.
From April 2021-September 2021, exports of wool and wool blended products stood at Rs. 7481.65 crores (US$ 908.02 million), a 49.34% increase as compared to the same period previous year.
The woolen yarn and articles of apparel & clothing accessories, both knitted and non-knitted, are among India's largest exported woolen products. During 2020-21, the wool yarn exports of India was valued at US$ 65 million, contributing to 7% of the total exports during that financial year. The apparel and clothing accessories of wool (knitted and non-knitted) exports during the same year was US$ 296 million with a share of 32% in the total exports.
The overall trend of the exports for the last few years is as given in the data below,
India exports wool and woolen products to many countries around the world. The major importing regions are the Middle East, Latin America, South East Asia and East Asia and the major importing countries are the US, the UK, France, Germany, Russia, Canada, UAE, Saudi Arabia, Sweden, Belgium, Norway and Australia. Italy, Korea, the UK, USA, Sri Lanka, Germany and Australia are India’s major woolen yarn export destinations. Italy, Korea and the UK imported yarn fabrics and made ups from India worth US$ 17.8 million, US$ 17.7 million and US$ 12.2 million during 2020-21, respectively.
Indian carpets are majorly exported to USA, Germany, Australia, the UK, UAE, Sweden and Netherlands. During 2020-21, USA imported carpets worth US$ 797 million from India. During the same period Germany, Australia and the UK imported carpets worth US$ 85 million, US$ 66.5 million and US$ 66 million, respectively. During 2020-21, USA, Oman, Afghanistan, Germany and France were the top 5 readymade woolen garments importers from India with total imports worth US$ 386 million. The other major importers during that period were Netherlands and Tanzania at US$ 4 million and 3.4 million respectively.
During 2021-22, India unveiled a textile industry development plan with total allocation of Rs. 2,752 crore (US$ 348 million) for the development of handloom, textile handicrafts, wool, silk, powerloom, jute sector. The plans also include various initiatives for technology upgradation, setting up textile parks, building research and development facilities and promoting the North-Eastern textile industry.
Integrated Wool Development Programme (IWPD)
The primary goal of this initiative was to stop the wool production decline in India and to improve the manufacturing processes. The objective of this programme was to improve the quality of wool fiber and establish service and research centers to improve the quantity and quality of import and export productions. The programme was also aimed at improving the marketing and branding promotion for the export promotion of wool. As a part of this scheme, a total of Rs. 126 crore (US$ 16 million) were allocated to various activities for the period 2021-22 to 2025-26.
Some of the activities planned under this programme are enhancing the supply chain, linking the wool industry with producers, providing a marketing platform, establishing modern wool processing units, skill development and capacity building, etc.
The sub-components of IWDP are,
  • Wool Marketing Scheme
  • Wool Processing Scheme
  • HRD and Promotional Activities Scheme
  • Pashima Wool Development Scheme
Central Wool Development Board (CWDB)
Some of the objectives of CWDB are to,
  • Promote growth and development of wool and woolen products
  • Undertake arrangements for marketing and stabilizing the prices
  • Promote and set wool and woolen product standards
  • Quality control
  • Improve the existing markets and develop new uses of wool
  • Advise the Central Government in the matters related to wool and woolen industry development
Wool and Woolens Export Promotion Council (WWEPC)
Established in the year 1964, WWEPC functions under the administrative control of the Ministry of Textile. Following are some of the functions and responsibilities of the council,
  • To act as a registering authority for the members dealing in exports of all types of wool and woolen blended products
  • To act as an advisory body to the Government of India for setting up policies and to act as an intermediary between the woolen industry and the government
  • To provide financial assistance to the member of the council to participate in the trades and exhibitions abroad
  • Promote and educate the member exporters about the schemes and benefits provided by the government
  • To organize trade expos and bring buyers and sellers together
  • Organize seminars and workshops for the member exporters to improve competitiveness and create consciousness




Source: India Brand Equity Foundation

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