Snapshot
India - Knitting the future
India is among the world's largest producers of Textiles and Apparel
The domestic textiles and apparel industry contributes 2% to India’s GDP, 7% of industry output in value terms and 12% of the country’s export earnings.
The textiles and apparel industry in India is the second-largest employer in the country providing direct employment to 45 million people and 60 million people in allied industries.
The share of India’s textiles and apparel exports in mercantile exports is 11% for the year 2019-20.
India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 bn by 2025, up from $52.7 bn in 2019.
- FDI in the textiles and apparel industry has reached up to $3.45 bn during 2020
- Exports in the textiles and apparel industry are expected to reach $300 bn by 2024-25 resulting in a tripling of Indian market share from 5% to 15%
- To double the industry size to $300 bn by 2025-26, 7 mega textile parks have been planned.
For further details, please refer FDI Policy
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Expected sector CAGR (2019-2021)
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Share in India's GDP
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Textile exports share in overall exports
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Direct employment generated
Largest producer of cotton & jute in the world
Second largest manufacturer of PPE and producer of polyester, silk and fibre in the world
Second largest employment provider in India after agriculture
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
Textile & garments industry in India is expected to reach $223 bn by 2021 from $140.4 bn in 2018.
The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. It is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool and silk products to the organized textile industry. The organized textile industry is characterized by the use of capital-intensive technology for mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.
The domestic textiles and apparel industry stood at $140 bn in 2018 (including handicrafts) of which $100 bn was domestically consumed while the remaining portion worth $40 bn was exported to the world market.
Further, the domestic consumption of $100 bn was divided into apparel at $74 bn, technical textiles at $19 bn and home furnishings at $7 bn. While exports comprised of textile exports at $20.5 bn apparel exports at $16.1 bn and handlooms at $3.8 bn.
GROWTH DRIVERS
Abundance of raw material
Presence of entire value chains
Competitive manufacturing costs
Availability of skilled manpower
Large and growing domestic market
Rising per capita income, higher disposable incomes and preferences for brands
Organized retail landscape & e-Commerce
Increased focus on technical textiles due to growth of end-user industries such as automotive, healthcare, infrastructure and oil and petroleum
Production-Linked Incentive (PLI) Scheme in Man-made fiber and technical textiles with financial outlay of INR 10,683 cr under Atmanirbhar Bharat package
Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Textiles Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
INR 10,683 cr
Scheme Outlay
Ministry
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up manufacturing operations in the state.
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