Snapshot

India - Knitting the future

India is among the world's largest producers of Textiles and Apparel

The domestic apparel & textile industry in India contributes 5% to the country’s GDP, 7% of industry output in value terms, and 12% of the country’s export earnings. India is the 6th largest exporter of textiles and apparel in the world.

India is one of the largest producers of cotton and jute in the world. India is also the 2nd largest producer of silk in the world and 95% of the world’s hand-woven fabric comes from India. The Indian technical textiles segment is estimated at $16 bn, approximately 6% of the global market.

The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 million people and 100 million people in allied industries. 

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 in India has reached up to $3.75 bn till March 2021
  • India’s exports of textiles and apparel are expected to reach $100 bn in the next 5 years, growing at a CAGR of 11%
  • To double the Indian textile and apparel industry size to $190 bn by 2025-26, 7 mega textile parks have been planned
  • The Indian technical textiles market was estimated at $20 bn in 2019-20 and grew at a CAGR of 10% since 2015-16
  • The domestic technical textile market for synthetic polymer was valued at $7.1 bn in 2020 and is projected to reach $11.6 bn by 2027, growing at a CAGR of 7.2%, while technical textile market for wovens is expected to grow at a CAGR of 7.4% to $15.7 bn by 2027, up from $9.5 bn in 2020

For further details, please refer FDI Policy

  • %

    Expected sector CAGR (2019-2021)

  • %

    Share in India's GDP

  • %

    Textile exports share in overall exports

  • mn

    Direct employment generated

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One of the largest consumers and producers of cotton with the highest acreage of 126.14 lakh hectares under cotton cultivation

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

Textiles and garments industry is expected to reach $190 bn by 2025-26 from $103.4 bn in 2020-21.

The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. The Indian textile and apparel industry 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 in India. The organized textile industry in India is characterized by the use of capital-intensive technology for the mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.

The domestic textiles and apparel industry stood at $108.5 bn in 2019-20 of which $75 bn was domestically consumed while the remaining portion worth $28.4 bn was exported to the world market. 

The highest contributors to FDI in the Textile sector of India (including dyed, printed) from April 2016 to March 2021 are Japan, Mauritius, Italy, and Belgium.

Cotton production supports 5.8 million farmers and 40-50 million people in allied sectors. 

Further, the domestic consumption of $75 bn was divided into apparel at $55 bn, technical textiles at $15 bn and home furnishings at $5 bn. While exports comprised of apparel exports at $12 bn; home textiles exports at $4.8 bn; fabric exports at $4 bn; yarn exports at $3.8 bn; fiber exports at $1.8 bn and others at $2 bn. 

Export of Cotton Yarn/Fabrics/Made ups, Handloom Products Etc. was valued at $1297.82 bn in August 2021 with a positive growth of 55.62% over exports of $833.95 bn in August 2020.

Export of RMG Of All Textiles was valued at $1235.11 bn in August 2021 with a positive growth of 13.99% over exports of $1083.53 bn in August 2020.

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

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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

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FAQs

Frequently
Asked Questions

What are the ATUFS benchmarked machineries?

TUFS benefit is available for TUFS benchmarked machinery covering the following activities:-
a) Cotton ginning and pressing.
b) Silk reeling and twisting.
c) Wool scouring, combing and carpet industry.
d) Synthetic filament yarn texturising, crimping and twisting.
e) Spinning.
f) Viscose Staple Fibre (VSF) and Viscose Filament Yarn (VFY).
g) Weaving, knitting and fabric embroidery.
h) Technical textiles including non-wovens.
i) Garment/design studio/made-up manufacturing.
j) Processing of fibres, yarns, fabrics, garments and made-ups.
k) Production activities of Jute Industry.

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What are the subsidies under Amended Technology Upgradation Fund Scheme (ATUFS)?

Capital Investment Subsidy is available under ATUFS under this scheme for eligible segments @10%/ 15% with an upper limit on investment amount.

For more information, click here.

 

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What is certificate of exemption and endorsement of GSP in Export Promotion & Quality Assurance?

An exemption certificate is issued to enable quota/duty free entry of the eligible items of Handloom origin at the importing end. GSP certificates (Form A) is issued for the eligible items for the following tariff preference giving (donor) countries:

Australia, Canada, Japan, New Zealand, Norway, Switzerland, Turkey, United States of America (USA), Republic of Belarus, Russian Federation, and European Union.

The European Union includes 28 countries Viz. Austria, Belgium,Czech Republic, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands (Holland), Republic of Bulgaria, Romania, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and United Kingdom (UK).

Note: 
1) For Australia, the main requirement is exporter’s declaration on the normal commercial invoice. Form A accompanied by the normal commercial invoice is an acceptable alternative, but official certification is not required.

2) In case of Canada and New Zealand, Official Certification is not required.

3) The United States does not require GSP Form A. A declaration setting forth all pertinent detailed information concerning the production or manufacture of the merchandise is considered sufficient only if requested by the district collector of the Customs.

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What is Amended Technology Upgradation Fund Scheme (ATUFS)?

ATUFS is set up to incentivise production and employment in the garmenting sector. The scheme would facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in the country.

For more information, click here.

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What does the MSS Scheme stands for?

MSS stands for Marketing Support & Services scheme. The Scheme has been introduced to promote and provide financial assistance to artisans to participate in domestic and international craft exhibitions/seminars in metropolitan cities/state capitals / places of tourist or commercial interest/other places.

For more information, click here.

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