Article
Structure and Geographical Concentration of Textile Industry in India: A Cross-sectional Analysis
The Textile and Wearing Apparel is one of the most significant and highly heterogenous sector of Manufacturing Sector in India with substantial contribution to output, employment and exports. This study aims to examine the structural profile and geographical spread of organised textile industry of India in cross sectional settings by using Annual Survey of Industries data for 2023–24 on four textile sub-sectors as classified under three-digit level the National Industrial Classification, 2008. The study uses five structural variables: number of registered firms, employment, gross value added, fixed capital and raw material consumption comprises of 31,167 firms employing 30,52,519 employees generating a Gross value added of Rs.1,53,102 crores with fixed capital of Rs.2,51,718 crores and raw material consumption of Rs.4,49,574 crores. The study uses the Location Quotient (LQ) Analysis and Ellison-Glaeser (EG) index thereby capturing both relative specialisation and sub-sector level agglomeration. There is pronounced divergence at sub sectoral level. EG index values supports that Manufacture of Knitted and Crocheted Apparel EG (γ)=0.3317 and Manufacture of Wearing Apparel EG (γ)=0.0808 are highly concentrated. Spinning, Weaving and Finishing of Textile EG (γ)=0.0334 and Manufacture of Other Textiles EG (γ)=0.0269 are moderately concentrated. Location Quotient analysis identifies regional specialisation as Tamil Nadu and Punjab are specialised in Knitted apparel, Karnataka and Uttar Pradesh in Wearing Apparel while Gujarat and West Bengal in spinning and Weaving. These findings accentuate regional heterogeneity within the industry and carry direct policy relevance for industrial clustering strategies, targeted investment and regional value chain development.