The Textiles and clothing industry is the second most important economic activity in the country in terms of employment generation (after agriculture). It is also one of the major sources of export earnings for the country. Its share in manufacturing value added is estimated currently at about 12 percent. The government is considering measures to support the industry on which livelihood of millions of people is dependent. The total value of output for both factory and non-factory sector is estimated at Rs 240459 crore during 2005-06, which increased to 279503 crore during 2007-08. The share of factory sector in it is estimated at Rs. 196466 crore i.e. 70.1 per cent during 2007-08.
The value added is a much better indicator in cases where double counting in output estimates cannot be avoided. National Account Statistics estimated value added share in output at 26.7 per cent of the output value i.e. Rs. 74492 crore during 2007-08.
The share of value added in output of factory sector is much lower compared to non-factory sector. This is true for all the industries and share for factory sector at aggregate level is 18.7 per cent as against share of 45.4 per cent for non-factory sector. The value of output in spinning, weaving and finishing accounts for Rs 205603 crore. The 46 share of value addition in it is estimated at Rs 48120 i.e. 23.4 per cent of the value of output. For weaving apparel value added share in output is 39 per cent. The number of employees estimated from the NSSO data on factory and non-factory sector are 12.58 million. This includes all fibers.